May. 7, 2021
After starting the day at 151.49, GBP/JPY rallied to 152.12, hitting its highest point in 4 weeks, It later lost 27 pips and is now trading at 151.85 (Start trading Pound/Yen at FXTM today).
The uptick comes while some more positive signs for the Pound/Yen are out as the United Kingdom Construction PMI published today at 8:30 AM came out at 61.6, falling short of the 62.3 projections and continuing its decline from the previous 61.7 figure.
At the same time, United Kingdom Composite PMI came out at 60.7, above the estimate of 60. This is also a step forward from the previous data of 56.4.
At the same time, United Kingdom's BoE Interest Rate Decision (May) published yesterday at 11:00 AM came out at 0.1. The indicator value matched both the projected value and the previous data of 0.1.
As the day reaches an end, a chart visual study suggests Pound/Yen is eyeing resistance at 153.25 and is now only 140 pips away, whilst this indicates a slow down or reverse of direction around 153.25, crossing it might suggest a prolonged positive move. In terms of trend indicators, we can see that although up today, it's worth noting that earlier the pound/yen dropped below the 5 day Simple Moving Average as it was trading at 151.49, usually an indication that a negative trend is ahead. Asset volatility analysis shows that the upper Bollinger band is at 152.48, This is a slight indication of a slowdown.
Overall, looking at the technical analysis landscape, it seems the Pound/Yen is likely to reverse course and start pointing down in the short term.
A look at other markets also shows green moves as the Euro gains 102 pips, making its largest daily gain since December 2020.
At the same time, Singapore Dollar dropped by 0.61%, its largest single-day drop since May 2020 at 1.4649, EUR/CAD is down to its lowest value in 1 year. The Pound/Dollar climbed above the significant 1.4 level for the first time in 2 months.
The market is looking forward to Japan. Household Spending (YoY) (Mar) is projected to rise to -5.3, beating the previous -6.6 figure. Official data is expected today at 11:30 PM. Japan Household Spending (MoM) (Mar) projected to outperform last figure with 2.8 while it previously stood at 2.4, data will be released today at 11:30 PM.
Pound/Yen social media highlights: