Hi there,
We take another look at GJ. I see an ascending channel pattern with GBP/JPY trading within parallel trendlines. The pair respected both the upper and lower boundaries of this bullish channel, with the current price action showing consolidation near the upper resistance around 198.20 levels.
🎙️ **Key Support and Resistance Levels**
We have critical levels at the time of this writing as following:
- **Immediate Support**: 197.30 (61.8% Fibonacci retracement level) and 196.434 (38.2% Fibonacci retracement)
- **Major Support**: 194.0 37 representing the main channel support
- **Resistance**: 198.80 acting as the primary obstacle.
- **Extended Target**: 199.55 as the next potential bullish objective
**Wave Structure Analysis**
We have ABC wave pattern, with the pair seeming to have completed a Wave (C) bullish rally and now forming a temporary retracement. The current consolidation suggests the pair is "catching its breath" before a breakout.
## 🎲 Some Fundamental Highlights Appealing to Bullish Bias:
**1. Bank of England's Cautious Easing Stance**
BoE Governor Bailey has signaled a "gradual and careful" approach to monetary policy, pointing to sticky inflation concerns while acknowledging a softening labor market with over 100,000 fewer payrolled workers in May. This measured approach is keeping the British Pound supported near year-to-date highs.
**2. Bank of Japan's Divided Policy Response**
The BoJ remains cautious despite rising inflationary pressures, with Governor Ueda maintaining a data-dependent approach. While hawkish board member Naoki Tamura suggests "decisive" rate hikes may be needed, the central bank's measured pace at just 0.5% rates keeps the Yen defensive against stronger currencies.
**3. Inflation Dynamics Favoring GBP**
Japan's Consumer Price Index has surged due to higher food and energy costs, yet the BoJ's hesitant response contrasts with the BoE's more proactive stance on inflation management. This divergence in central bank responses to inflation is supporting GBP strength against the Yen.
**4. Upcoming Japanese Economic Data Releases**
Key Japanese economic indicators are scheduled for release, including June Tokyo CPI, May Unemployment Rate, and Retail Trade data. These releases could provide clarity on the BoJ's future policy direction and potentially impact the Yen's performance against the Pound.
Happy Trading,
K.
Not trading advice.
We take another look at GJ. I see an ascending channel pattern with GBP/JPY trading within parallel trendlines. The pair respected both the upper and lower boundaries of this bullish channel, with the current price action showing consolidation near the upper resistance around 198.20 levels.
🎙️ **Key Support and Resistance Levels**
We have critical levels at the time of this writing as following:
- **Immediate Support**: 197.30 (61.8% Fibonacci retracement level) and 196.434 (38.2% Fibonacci retracement)
- **Major Support**: 194.0 37 representing the main channel support
- **Resistance**: 198.80 acting as the primary obstacle.
- **Extended Target**: 199.55 as the next potential bullish objective
**Wave Structure Analysis**
We have ABC wave pattern, with the pair seeming to have completed a Wave (C) bullish rally and now forming a temporary retracement. The current consolidation suggests the pair is "catching its breath" before a breakout.
## 🎲 Some Fundamental Highlights Appealing to Bullish Bias:
**1. Bank of England's Cautious Easing Stance**
BoE Governor Bailey has signaled a "gradual and careful" approach to monetary policy, pointing to sticky inflation concerns while acknowledging a softening labor market with over 100,000 fewer payrolled workers in May. This measured approach is keeping the British Pound supported near year-to-date highs.
**2. Bank of Japan's Divided Policy Response**
The BoJ remains cautious despite rising inflationary pressures, with Governor Ueda maintaining a data-dependent approach. While hawkish board member Naoki Tamura suggests "decisive" rate hikes may be needed, the central bank's measured pace at just 0.5% rates keeps the Yen defensive against stronger currencies.
**3. Inflation Dynamics Favoring GBP**
Japan's Consumer Price Index has surged due to higher food and energy costs, yet the BoJ's hesitant response contrasts with the BoE's more proactive stance on inflation management. This divergence in central bank responses to inflation is supporting GBP strength against the Yen.
**4. Upcoming Japanese Economic Data Releases**
Key Japanese economic indicators are scheduled for release, including June Tokyo CPI, May Unemployment Rate, and Retail Trade data. These releases could provide clarity on the BoJ's future policy direction and potentially impact the Yen's performance against the Pound.
Happy Trading,
K.
Not trading advice.
Trade closed: target reached
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.