Forex Market: GBP/JPY daily trading forecast

Friday’s trade saw GBP/JPY within the range of 170.91-172.23. The pair closed at 171.59, losing 0.21% on a daily basis.

At 8:03 GMT today GBP/JPY was down 0.90% for the day to trade at 170.01. The pair broke the first and the second key daily supports and the first key weekly support level, touching a daily low at 169.74 at 6:45 GMT.

Fundamental view

United Kingdom

The sterling lost ground sharply against peers, after it became clear that the percentage of voters, who support Scotlands independence from the United Kingdom reached 51% less than two weeks before the referendum is conducted, YouGov Plc survey for the Sunday Times showed.

Japan

At 23:50 GMT Bank of Japan will release the minutes from its most recent meeting on policy. The minutes offer detailed insights on central bank’s monetary policy stance. This release is closely examined by traders, as it may provide clues over interest rate decisions in the future. Moderate-to-high volatility is usually present after the publication. In case the minutes show a hawkish outlook, this usually supports the yen, while a dovish outlook usually has a bearish effect on the national currency.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 171.58. In case GBP/JPY manages to breach the first resistance level at 172.24, it will probably continue up to test 172.90. In case the second key resistance is broken, the pair will probably attempt to advance to 173.56.

If GBP/JPY manages to breach the first key support at 170.92, it will probably continue to slide and test 170.26. With this second key support broken, the movement to the downside will probably continue to 169.60.

The mid-Pivot levels for today are as follows: M1 – 169.93, M2 – 170.59, M3 – 171.25, M4 – 171.91, M5 – 172.57, M6 – 173.23.

In weekly terms, the central pivot point is at 172.15. The three key resistance levels are as follows: R1 – 173.38, R2 – 175.18, R3 – 176.41. The three key support levels are: S1 – 170.35, S2 – 169.12, S3 – 167.32.