Forex Market: GBP/JPY daily forecast

During yesterday’s trading session GBP/JPY traded within the range of 172.95-173.72 and closed at 173.07.

At 7:39 GMT GBP/JPY traded at 172.81, losing 0.22% for the day. The pair touched a daily low at 172.74 at 7:10 GMT, breaching the first key support.

Fundamental view

At 10:00 GMT, the Confederation of British Industry will release the results from its monthly CBI distributive survey. The index will probably jump to 23 this month, from 16 in the previous. The indicator reflects the short-term trends in the sectors of retail and wholesale in the UK. The indicator is closely watched by the Bank of England as it weighs on the formulation of the central bank’s and the government’s economic policy. This is a highly valuable barometer of trade on the main streets. It represents a survey among executives and managers and regards sales, orders and inventories.

A higher than projected reading will heighten pound’s appeal.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/JPY manages to breach the first resistance level at 173.54, it will probably continue up to test 174.02. In case the second key resistance is broken, the pair will probably attempt to advance to 174.31.

If GBP/JPY manages to breach the first key support at 172.77, it will probably continue to slide and test 172.48. With this second key support broken, the movement to the downside will probably continue to 172.00.