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market news
GBP/JPY remains under pressure below 194.00, maintaining bullish bias
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Hello everyone, today XM Forex will bring you "[XM Forex Official Website]: The pound/yen is still under pressure below 194.00, maintaining a bullish bias." Hope it will be helpful to you! The original content is as follows:
In the early trading session on Thursday, the pound/yen crossover suffered some selling pressure around 193.85. The yen (JPY) rose slightly in front of the pound (GBP) as markets expected the Bank of Japan (BoJ) to raise interest rates again. Investors will closely monitor preliminary readings of the UK's first quarter (Q1) gross domestic product (GDP) data released later on Thursday.
Technically, the positive outlook for the GBP/JPY crossover remains valid, with prices firming above the key 100-day exponential moving average (EMA) on the daily chart. The 14th-day relative strength index (RSI) was above the midline near 56.45, further enhancing the upward action energy, indicating that there is a high possibility of further rise.
The first upward resistance level for GBP/JPY appears in the 196.00-196.10 area, representing the psychological barrier and the upper boundary of the Bollinger band. Further north, the next obstacle is at 196.41, the high on May 14. If the uptrend continues, you may see an increase of 197.41, which is the high on January 6.
On the other hand, the first support level to be paid attention to is 193.43, the low on May 12. The additional downward filtering is located at 192.06, i.e., 100-day EMA. A breakout above this level could expose 190.42, the May 7 low.
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