GBP/JPY Professor: The bearish perspective remains at stake below 188.50

  • The GBP/JPY weakens around 188.45 in the first European session on Monday, losing 0.35% in the day.
  • The crossing maintains the negative perspective below the 100 -day EMA with a bearish RSI indicator.
  • The initial support appears in 187.47; The first upward barrier is located in 190.00.

The GBP/JPY crossing weakens about 188.45 during the first European session on Monday. The continuous uncertainty about the commercial tariffs of US President Donald Trump continues to weigh on the feeling of investors, which drives refuge currencies such as Japanese Yen (JPY).

According to the daily graph, the bassist perspective of the GBP/JPY is still in force since the crossing remains limited below the 100 -day EMA key. The lower resistance path is down, with the 14 -day relative force index located below the midline about 43.60.

The first downward objective for the crossing appears in 187.47, the minimum of April 17. Extended losses could see a fall to 186.54, the minimum of April 8. The crucial support level for the GBP/JPY is observed in the 185.00-184.95 area, representing the psychological level and lower limit of the Bollinger band.

In the upward case, the immediate resistance level is found in the Round Brand of 190.00. A sustained trade above this level could attract some buyers around 191.90, the EMA of 100 days. Further north, the next obstacle to monitor is 194.20, the maximum of April 3.

GBP/JPY DAILY GRAPH

And in Japanese faqs


The Japanese Yen (JPY) is one of the most negotiated currencies in the world. Its value is determined in general by the march of the Japanese economy, but more specifically by the policy of the Bank of Japan, the differential between the yields of the Japanese and American bonds or the feeling of risk among the operators, among other factors.


One of the mandates of the Bank of Japan is the currency control, so its movements are key to the YEN. The BOJ has intervened directly in the currency markets sometimes, generally to lower the value of YEN, although it abstains often due to the political concerns of its main commercial partners. The current ultralaxy monetary policy of the BOJ, based on mass stimuli to the economy, has caused the depreciation of the Yen in front of its main monetary peers. This process has been more recently exacerbated due to a growing divergence of policies between the Bank of Japan and other main central banks, which have chosen to abruptly increase interest rates to fight against inflation levels of decades.


The position of the Bank of Japan to maintain an ultralaxa monetary policy has caused an increase in political divergence with other central banks, particularly with the US Federal Reserve. This favors the expansion of the differential between the American and Japanese bonds to 10 years, which favors the dollar against Yen.


The Japanese Yen is usually considered a safe shelter investment. This means that in times of tension in markets, investors are more likely to put their money in the Japanese currency due to their supposed reliability and stability. In turbulent times, the Yen is likely to be revalued in front of other currencies in which it is considered more risky to invest.

Source: Fx Street

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