GBP/JPY Weekly Analysis (week of 04-08/01)

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Weekly Summary

Pound/Yen is trading around 140.92 after starting the week at zero (up 0.%) .

The uptick comes while some more positive signs for the Pound/Yen are out, as the United Kingdom Composite PMI released earlier shows an improvement to 50.4 from the preceding date of 49, but falls short of the projected 50.7. The United Kingdom Manufacturing PMI came out at 57.5, above the estimate of 57.3. This is also a step forward from the previous data of 55.6.

On the flip side, United Kingdom Construction PMI published yesterday at 9:30 AM came out at 54.6, falling short of the 55 projections and continuing its decline from the previous 54.7 figure.

A look at other markets shows behavior that usually indicates a green move for the pound/yen as Euro/Pound went down to 0.9009 (31 pips).

In the meantime, the British Pound trades around 1.356, with no major change. USD/SGD is trading around 1.3252.

Jan. 8, 2021

Stable day for Pound/Yen, trading around 140.92

(23:15) GMT

This in-between state for Pound/Yen is reflected by market data published as United Kingdom Construction PMI fell short of the 55 projections, at 54.6 and continued its downward trajectory from the previous figure of 54.7. Data for the United Kingdom House Price Index was released today at 8:30 AM, suggests a downwards trend of six, while previous data was 7.6. Japan Household Spending (YoY) (Nov) released yesterday at 11:30 PM is better than expected at 1.1 but down from preceding data of 1.9 according to new data.

While Pound/Yen was pretty flat today, mixed performance was seen elsewhere as Euro/Pound went down to 0.9009 (31 pips). The pound trades around 1.356, with no major change.

The upper Bollinger band is at 141.43, indicating a downward move might be next. Overall, looking at the technical analysis landscape, it seems the Pound/Yen might be pointing down in the short term.

Jan. 7, 2021

Pound/Yen goes up to 140.76 after starting the day at 140.18 (up 0.41%)

(22:15) GMT

This move comes while some more positive signs for the Pound/Yen are out as the United Kingdom Composite PMI released earlier shows an improvement to 50.4 from the preceding date of 49, but falls short of the projected 50.7.

On the flip side, United Kingdom Construction PMI published yesterday at 9:30 AM came out at 54.6, falling short of the 55 projections and continuing its decline from the previous 54.7 figure.

More data out today as the Data for Japan Services PMI released yesterday is better than expected with 47.7, but worse than the previous figure of 47.8.

USD/SGD is trading around 1.3244 (up 69 pips). The Pound/Dollar lost 45 pips from the start of the session, trading at 1.3562 levels.

The upper Bollinger band is at 141.52, indicating a negative correction might be next. Overall, looking at the technical analysis landscape, it seems a reverse of course in the short term might be next for the Pound/Yen

The market is looking forward to Japan Household Spending (YoY) (Nov) is expected to come out at -1.5 when it's released today at 11:30 PM, This is a decline from the preceding data which was 1.9. Japan Household Spending (MoM) (Nov) is expected to come out at -1.3 when it's released today at 11:30 PM, This is a decline from the preceding data which was 2.1. The United Kingdom House Price Index is expected today at 8:30 AM.

Jan. 6, 2021

After starting the day at 139.88, Pound/Yen crawls to 140.22 (up 34 pips)

(21:15) GMT

The Pound/Yen green move comes while some more encouraging signs are out as the United Kingdom Composite PMI released earlier shows an improvement to 50.4 from the preceding date of 49, but falls short of the projected 50.7.

More data out yesterday as data for Japan Services PMI released yesterday at 12:30 AM was better than expected at 47.7, but worse than the previous figure of 47.8. Japan 10-Year JGB Auction came out at 0.019, marks no change from the preceding figure.

A look at other markets shows behavior that usually indicates a green move for the pound/yen as The British Pound made some headway from 1.3577 to 1.3612 (0.26%, 35 pips).

At the same time, Euro/Pound is trading around 0.9055 after starting the session at 0.9024 (down 0.34%).

The upper Bollinger band is at 141.45, indicating a negative correction might be next. Overall, looking at the technical analysis landscape, it seems a reverse of course in the short term might be next for the Pound/Yen

The market is looking forward to the United Kingdom's Construction PMI projected to outperform the last figure with 55, while it previously stood at 54.7, figure will be published today at 9:30 AM. Japan Household Spending (MoM) (Nov) is expected to come out at one when it's released tomorrow at 11:30 PM, This is a decline from the preceding data which was 2.1. Japan Household Spending (YoY) (Nov) is projected to rise to 2.5, beating the previous 1.9 figure. Official data is expected tomorrow at 11:30 PM.

Jan. 5, 2021

Steady Pound/Yen parks at 139.94

(21:15) GMT

The GBP/JPY trading at 139.94 with no clear-cut direction, ranging between 140.15 and 139.48.

This limbo state for Pound/Yen is reflected by market data published as Data for United Kingdom Manufacturing PMI released yesterday comes out at 57.5, beating projections of 57.3 and showing improvement over the preceding figure of 55.6.

While the pound/yen is pretty flat so far today, mixed performance were seen elsewhere as the Canadian Dollar fell to 1.2675, hitting a 2 year low. The EUR/NZD fell to 1.6983, hitting a 10 month low.

The Pound/Yen nearest support level is at 137.46. At 139.59, Pound/Yen made an initial breakout below the 21 day Simple Moving Average. Medium-term trend indication has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line crosses below the MACD signal line. The upper Bollinger band is at 141.43, indicating a downward move might be next. Overall, looking at the technical analysis landscape, it seems the Pound/Yen is likely to start pointing downward in the short term.

Data to be released later might clear up some of the fog for Pound/Yen as the United Kingdom Composite PMI figure is projected at 50.7 while it previously stood at 50.7, data will be released today at 9:30 AM. United Kingdom BoE Gov Bailey's speech is scheduled today at 2:00 PM. Japan Services PMI is projected to decline to 47.2 while the previous data was 47.8, Data will be released today at 12:30 AM.

Jan. 4, 2021

Pound/Yen goes back up to September 2020 levels, reaching 141.31

(21:15) GMT

After starting the day at 141.08, GBP/JPY rallied to 141.31, hitting its highest point in 4 months, It later lost 132 pips and is now trading at 139.98

On the flip side, United Kingdom's Manufacturing PMI came out at 57.5, above the estimate of 57.3. This is also a step forward from the previous data of 55.6.

Pound/Yen broke through the 140 support line and dropped one pip below it. At 140.11, Pound/Yen made an initial breakout below the 10 day Simple Moving Average. The upper Bollinger band was at 141.42, indicating a further downward move might be next. Overall, looking at the technical analysis landscape, it seems the Pound/Yen is likely to continue pointing down in the short term.

Also today – At 1.2692, Canadian dollar is down to its lowest value in 2 years. At 1.6982, EUR/NZD is down to its lowest value in 10 months. A new 2 year high for pound/dollar at 1.3684. USD/SGD fell to 1.32, hitting a 2 year low.

Pound/Yen social media highlights: