The GBP/JPY has closed the 60-pip bullish gap that kicked off the week’s trading. The 26 February GBPJPY Technical Outlook shows that it is currently testing back into the 149.10 region during the Tokyo session.
26 February, GKFX – The Yen remains in control in Asia markets, despite constant cajoling, prodding, and even outright threats from the Bank of Japan (BOJ) which is desperate to clamp a lid on the constantly-strengthening Yen, whose growth threatens to undermine Japan’s fragile economic expansion.
While the BOJ’s constant sooth-talking appears to have begun taking an effect, the Yen remains in an untenable, overpowered position.
Brexit continues to weigh on the Sterling
Adding to the GBP/JPY’s undermining, Brexit continues to weigh on the Sterling. Constant in-fighting within the UK’s parliament as Prime Minister Theresa May and her ruling Conservative party has begun to take its toll, with the GBP prone to risk shocks as the UK’s post-Brexit future fails to take shape as the government continuously comes to loggerheads over what the economic landscape should and will look like after the big split begins next March.
The JPY kicks off the week’s economic indicators with mid-tier Economic Indexes today at 05:00; The GBP’s calendar remains light and clear until Wednesday, with Consumer Confidence dropping super-early in the day, scheduled for 00:01 GMT.
26 February GBPJPY Technical Outlook
The pair remains on the low side, trading near the 200-day SMA at 147.67 and beneath the 34 EMA at 151.20. H4 candles show the pair forming a potential bottom as GBP/JPY consolidates. Volatility has left the pair stretched thin in both directions, and support waits below at 148.87 and 148.54, with resistance high above at 150.18 and 150.93.
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