Pound-yen awaiting news from central banks
Much like cable, the pound has bounced back against the yen in recent days after relatively positive British data. However, Japan’s latest GDP release showed that a technical recession has been averted for now, and there are rumours that the Bank of Japan might even consider tightening policy at its meeting next week. There remains some speculation that Japan’s government or central bank might intervene if the yen continues to lose significant value.
On the chart, the situation seems at first glance more favourable for buyers than cable. The slow stochastic is close to oversold and the price has retracemed more than GBPUSD, while the previous context for most of 2024 so far was an uptrend rather than a sideways trend. A clear break above ¥191.50 seems unlikely in the near future unless next week’s release are notably surprising, but a retest of recent highs might be possible if the bounce continues.
To the downside, ¥186 seems to be an obvious support – this was the area of February’s lows and is the current zone of the 100 SMA. The next key drivers from news are likely to be the Bank of Japan’s meeting early on Tuesday 19 March, British inflation the following day and the BoE on Thursday 21 March.
The opinions here are my own; they do not reflect those of Exness. This is not a recommendation to trade.
On the chart, the situation seems at first glance more favourable for buyers than cable. The slow stochastic is close to oversold and the price has retracemed more than GBPUSD, while the previous context for most of 2024 so far was an uptrend rather than a sideways trend. A clear break above ¥191.50 seems unlikely in the near future unless next week’s release are notably surprising, but a retest of recent highs might be possible if the bounce continues.
To the downside, ¥186 seems to be an obvious support – this was the area of February’s lows and is the current zone of the 100 SMA. The next key drivers from news are likely to be the Bank of Japan’s meeting early on Tuesday 19 March, British inflation the following day and the BoE on Thursday 21 March.
The opinions here are my own; they do not reflect those of Exness. This is not a recommendation to trade.