With GBP/JPY entering the 172-yen range, all eyes are on whether it will rise

With GBP/JPY entering the 172-yen range, all eyes are on whether it will rise

18.05.2023

In the previous day's U.S. currency trading, the U.S. dollar rose against the yen.The USD/JPY pair rose from 136.306 to 137.717, forming a strong uptrend along the 20-period moving average (MA) on the hourly chart. Technically, the USD/JPY has broken above the 200-period simple moving average (SMA) on the daily chart, and the daily RSI is hovering just below 70. Therefore, we will be watching closely to see if the price extends to the upper boundary of the daily ascending parallel channel in the 140 yen range.

European currencies saw the pound rise against the yen after BOE Governor Bailey stated, “Our 2% inflation target remains unwavering, and further tightening will be necessary if inflation proves persistent.” The GBP/JPY pair rose by just under 2 yen, from 170.792 to 182.008, touching the 172 yen level for the first time since May 2.With yesterday’s rise, GBP/JPY has completely broken above the upper boundary of the 4-hour descending parallel channel. Attention now turns to whether the pair will extend its gains to the next resistance level at 172.300.

Today’s schedule includes remarks by MPC member Pill at 4:45 p.m., the ECB’s monthly report at 5:00 p.m., remarks by BOE Governor Bailey at 6:15 p.m., U.S. initial jobless claims and the Philadelphia Fed Business Outlook Index at 9:30 p.m., remarks by Fed Governor Jefferson at 10:05 p.m.,a speech by US Federal Reserve Vice Chair Bar at 10:30 PM, US existing home sales and the US Leading Economic Index at 11:00 PM, a speech by US Federal Reserve Bank of Dallas President Logan at 11:30 PM, US weekly natural gas inventories at 12:00 AM, and a speech by Canadian Bank of Canada Governor McClem at 12:00 AM.With GBP/JPY having entered the 172 yen range, we will closely monitor the market to see if it continues to rise.