Some renewed demand for havens has supported the yen over the last few days as American bonds were downgraded. Recent Japanese data have been mostly mixed, with investment likely up somewhat although 20 May’s balance of trade unexpectedly showed a deficit. British data have been more positive, with inflation particularly reaching a high of more than a year and lowering the probability of immediate further cuts by the BoE.
14 May’s rejection of ¥196 seems to have been decisive, with the price having moved fairly consistently down since then and back below the 200 SMA. The slow stochastic is very close to neutral and volume remains low compared to early in April. Consolidation in the value area between the 100 and 200 SMAs looks possible in the near future unless there’s a particular surprise from Japanese inflation.
The weekly chart shows an overall sideways trend since the fourth quarter of 2024, which is a normal situation for a major forex pair. The main release coming up for pound-yen specifically is Japanese consumer confidence on 29 May.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
14 May’s rejection of ¥196 seems to have been decisive, with the price having moved fairly consistently down since then and back below the 200 SMA. The slow stochastic is very close to neutral and volume remains low compared to early in April. Consolidation in the value area between the 100 and 200 SMAs looks possible in the near future unless there’s a particular surprise from Japanese inflation.
The weekly chart shows an overall sideways trend since the fourth quarter of 2024, which is a normal situation for a major forex pair. The main release coming up for pound-yen specifically is Japanese consumer confidence on 29 May.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
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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.