GBP/JPY Daily Review

GBP/JPY

The third wave of pandemic and severe measures to deal with it, has again led to lockdown and affected the trading trend. Last year GBP/JPY has struggled against the havoc of the pandemic. Restrictions seem like a retrieval of March. It does seem that the pandemic is willing to let the economies be stable and recover. UK government has taken serious actions to cope with the dire situation. Thus you can expect a rocky path ahead for GBP. A new wave of the virus and the alarming number of victims predict a harsh period ahead. Such an alarming situation and severe restrictions will have disturbing and detrimental effects on the trading trend of this pair. The spring season does not seem to be a blooming one this year for UK government.

Lower GDP and GBP/JPY:

Tighter lockdown is not the only issue and hurdle that Pound has to face now. The lower GDP of UK  government also contributes to affect and weaken GBP. Obviously such factors will lead to sell off. It will then drag the price towards 139.50 which is definitely going to disturb the traders. Unfortunately the lower GDP is one of the many bad news for Pound right now. UK government is trying its best to fight with the terrifying devil but still there is not any good news of a stable economy before spring. GBP will ultimately be influenced by it. This disturbing economic state will affect the trade as well.

Continuation of Trading Trend:

The movement of price was a bit slower yet the trend of this pairs manages to continue. Thus for now, this pair can enjoy the upward trend. However the way price has slowed down after reaching 141.40, it predicts retracement. Such movement will shift the price towards support level.   Currently the resistance point for the pair is at 141.40. It indicates that the current bullish trend is not going to over now. While on the other hand, the significant pair of JPY, EUR/JPY seems to spike up. The near term will witness the rising scenario of this pair.

 

 

 

 

 

Leave a Comment