Financial Japanese authorities had a meeting to address the weaker JPY and have agreed to act if the yen continues weakening. Despite falling on threats of an intervention by Japan, the GBP\/JPY pair managed to gain 1.30% within a week.
The GBP\/JPY pair fell on Friday and trimmed weekly gains of almost 4%, on an announcement by the Ministry of Finance and the Bank of Japan, regarding a weaker yen and said that Japan will take appropriate measures when necessary while maintaining close communication with the monetary authorities of each country. At 165.51, the GBP\/JPY collapses 1.31% as the New York session proceeds.
So far, Japan\u2019s authorities verbal intervention began to work; so the JPY began to strengthen. Negative sentiment weighed on global equities. US equities fall off the cliff recording losses between 2% and 2.80%, as Wall Street head into the weekend.
Concerns that inflation might last longer than expected despite efforts of global central banks, which tighten monetary policy, kept investors\u2019 flows flying toward safe-haven assets. In the case of the GBP\/JPY, traders braced for safety and booked profits, validating the words from government authorities in Japan.
The GBP\/JPY seesawed around 168.00 at the beginning of Friday\u2019s Asian session and tumbled on the statement\u2019s release, reaching a daily low of 165.16.
Technically; the GBP\/JPY retreated from fresh YTD highs printed on June 9 near 168.72 and fled towards the 23.6% Fibonacci retracement, drawn from the May 12 low towards June 9 high. Nevertheless, the GBP\/JPY daily chart depicts the pair as upward biased, but Friday\u2019s pullback might extend towards April\u2019s 28 daily high at 164.25.
In the short-term, the GBP\/JPY\u2019s 4-hour chart cross probed the 50-simple moving average (SMA) but failed to break below it and bounced shy of the S2 daily pivot point at 165.68. Also, the Relative Strength Index (RSI), albeit in negative territory, shifted upwards, opening the door for a cross over the 50 mid-line.
Upwards, the GBP\/JPY would face resistance at the S2 pivot at 165.68. Break above would expose the 166.00 barrier, followed by the S1 pivot level at 166.70. On the flip side, the GBP\/JPY first support would be the 50-SMA at 165.05. Once cleared, it would open the door towards the S3 pivot level at 164.67, followed by the 164.00 mark.<\/p>\n","protected":false},"excerpt":{"rendered":"
Financial Japanese authorities had a meeting to address the weaker JPY and have agreed to act if the yen continues weakening. Despite falling on threats of an intervention by Japan, the GBP\/JPY pair managed to gain 1.30% within a week.The GBP\/JPY pair fell on Friday and trimmed weekly gains of almost 4%, on an announcement …<\/p>\n","protected":false},"author":13,"featured_media":62779,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[8608,6987,9723],"class_list":["post-66921","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-gbp-jpy","tag-inflation","tag-intervention"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/66921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=66921"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/66921\/revisions"}],"predecessor-version":[{"id":66925,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/66921\/revisions\/66925"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/62779"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=66921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=66921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=66921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}