GBP/JPY pares back some post-hawkish BoE gains, pulls back under 156.00 level though still in bullish trend

GBP/JPY pulled back under 156.00 on Friday, though the bullish trend since January remains in play.
The pair will be focused on risk appetite, comments from BoE’s Bailey and UK GDP figures next week.

Joel Frank Independent Analyst

Despite a modest rally in the US equity space that would normally have a positive impact on GBP/JPY, the pair pulled back on Friday, slipping back under and the 156.00 level, though finding support above 155.50. The pair still trades a decent amount above its pre-hawkish BoE surprise levels of under 155.50, however, and looks set to close out the week about 1.0% higher despite Friday’s 0.3% pullback from weekly highs in the 156.50 area.

Looking at the pair from a technical perspective, the bullish trend that has dominated since January 24 remains in play and, if anything, Friday’s pullback is just a reversion to this trend. Near-term technical momentum this continues to point higher and bulls will be hoping that risk appetite steadies at the start of next week and facilitates a recovery back towards this week’s highs in the 156.50 area and perhaps the 18 January highs just under 157.00 beyond that.

Fundamentally speaking, central bank divergence perhaps also favours further GBP/JPY upside, with BoJ governor Haruhiko Kuroda flexing his dovish credentials on Friday in stark contrast to the inflation concerned BoE that lifted rates for a second successive meeting this week. On which note, BoE Governor Andrew Bailey will be speaking next Wednesday ahead of the release of UK Q4 GDP and December activity figures on Friday. The data calendar in Japan contains a smattering of tier two releases that are unlikely to impact JPY.

GBP/JPY

Overview
Today last price	155.9
Today Daily Change	-0.33
Today Daily Change %	-0.21
Today daily open	156.23

Trends
Daily SMA20	155.47
Daily SMA50	153.58
Daily SMA100	153.6
Daily SMA200	153.22

Levels
Previous Daily High	156.51
Previous Daily Low	155.05
Previous Weekly High	154.96
Previous Weekly Low	152.91
Previous Monthly High	157.77
Previous Monthly Low	152.91
Daily Fibonacci 38.2%	155.95
Daily Fibonacci 61.8%	155.61
Daily Pivot Point S1	155.35
Daily Pivot Point S2	154.47
Daily Pivot Point S3	153.89
Daily Pivot Point R1	156.81
Daily Pivot Point R2	157.39
Daily Pivot Point R3	158.27

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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