In a positive turn of events, the GBP/JPY currency pair rose back to the 197.00 level on Thursday after seeing a dip earlier in the week. This resurgence was driven by disappointing economic data from Japan, as the Japanese economy contracted by 0.5% compared to the anticipated growth of -0.4% in the first quarter. This contraction has further weakened the Yen. Additionally, the growth of the first quarter was revised from 0.1% to 0.0%.
There are no major economic indicators scheduled for this week, so traders are now awaiting the UK's Consumer Price Index (CPI) inflation data next week, along with a speech from the Bank of England's Governor Andrew Bailey, which will be closely watched for any hints of a shift in monetary policy stance. The Governor is scheduled to deliver the speech at the London School of Economics next Tuesday.
The GBP/JPY pair has recently shown a strong run, marking its ninth winning session in the past ten days. This rise came after intervention in the currency market by the Bank of Japan. However, there are still concerns that Japan may intervene again, considering its recent weak economic figures.
Technical indicators currently point to a bullish trend for GBP/JPY, but there are signs that this momentum may slow down. The Average Directional Movement Index (ADX) indicates a strong uptrend, but it's not registering higher highs. The Relative Strength Index (RSI) is above its midpoint, confirming bullish pressure, but it's flattening out. The Stochastic indicator has shown a positive sign with a crossover and a potential upward climb. If this movement gains strength, it could strongly confirm the ongoing bullish trend.
In conclusion, the GBP/JPY currency pair has recently risen back to the 197.00 level due to disappointing Japanese economic data, which has weakened the Yen. There are no major economic indicators this week, but next week's UK's CPI inflation data and the speech by Bank of England's Governor Andrew Bailey will be closely watched. The GBP/JPY pair is on a strong run, but technical indicators suggest that momentum may slow down. The ADX indicates a strong uptrend, the RSI is above its midpoint but flattening, and the Stochastic indicator shows a crossover and upward climb.
There are no major economic indicators scheduled for this week, so traders are now awaiting the UK's Consumer Price Index (CPI) inflation data next week, along with a speech from the Bank of England's Governor Andrew Bailey, which will be closely watched for any hints of a shift in monetary policy stance. The Governor is scheduled to deliver the speech at the London School of Economics next Tuesday.
The GBP/JPY pair has recently shown a strong run, marking its ninth winning session in the past ten days. This rise came after intervention in the currency market by the Bank of Japan. However, there are still concerns that Japan may intervene again, considering its recent weak economic figures.
Technical indicators currently point to a bullish trend for GBP/JPY, but there are signs that this momentum may slow down. The Average Directional Movement Index (ADX) indicates a strong uptrend, but it's not registering higher highs. The Relative Strength Index (RSI) is above its midpoint, confirming bullish pressure, but it's flattening out. The Stochastic indicator has shown a positive sign with a crossover and a potential upward climb. If this movement gains strength, it could strongly confirm the ongoing bullish trend.
In conclusion, the GBP/JPY currency pair has recently risen back to the 197.00 level due to disappointing Japanese economic data, which has weakened the Yen. There are no major economic indicators this week, but next week's UK's CPI inflation data and the speech by Bank of England's Governor Andrew Bailey will be closely watched. The GBP/JPY pair is on a strong run, but technical indicators suggest that momentum may slow down. The ADX indicates a strong uptrend, the RSI is above its midpoint but flattening, and the Stochastic indicator shows a crossover and upward climb.
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