Gbp jpy forex news
Here are some recent news and updates that may affect the GBP/JPY forex pair:
Current Market Situation:
- GBP/JPY is currently trading at around 144.50, with a slight upward trend.
- The pair has been range-bound for the past few days, with a high of 145.50 and a low of 143.50.
News and Updates:
- UK Inflation Rate: The UK's Consumer Price Index (CPI) rose to 2.5% in January, exceeding expectations and sparking concerns about inflationary pressures. This may lead to a stronger pound and a potential increase in interest rates.
- BoE Interest Rate Decision: The Bank of England (BoE) is expected to keep interest rates unchanged at its upcoming meeting on February 27. However, some analysts are predicting a rate hike in the coming months to combat inflation.
- Brexit Update: The UK and EU have agreed on a revised withdrawal agreement, which is expected to be voted on by the UK Parliament in the coming days. A successful vote could lead to a stronger pound and a more stable economic outlook.
- Japanese Economy: Japan's economy contracted by 0.4% in the fourth quarter of 2019, according to preliminary data. This may lead to a weaker yen and a potential increase in Japanese government bond yields.
- US-China Trade Talks: The US and China are set to resume trade talks in Washington DC this week. A successful agreement could lead to a stronger yen and a more stable global economy.
Technical Analysis:
- The GBP/JPY pair is currently trading above its 50-day and 200-day moving averages, indicating a bullish trend.
- The Relative Strength Index (RSI) is around 60, suggesting that the pair may be overbought in the short term.
- The pair is approaching a key resistance level at 145.50, which may be tested in the coming days.
Trading Recommendations:
- Long-term traders may consider buying the pair at current levels, with a target of 147.50 and a stop-loss at 143.50.
- Short-term traders may consider selling the pair at current levels, with a target of 142.50 and a stop-loss at 144.50.
- Traders should monitor the news and updates closely, as any significant changes in the market situation may affect the pair's direction.
Please note that these are just general recommendations and should not be taken as investment advice. It's always important to do your own research and consider your own risk tolerance before making any trading decisions.