The GBP/JPY pared some of its gains due to the strong yen. it hit an intraday low of 190.71 and is currently trading around 191.16. Intraday trend is bullish as long as support 188 holds.
Japan's economy recorded good performance in the fourth quarter of 2024, recording a real GDP growth of 2.8% every year and beating forecast expectations. Its growth was attributed to tepid increases in consumer spending, business investment, and exports.
But the broader economic growth for 2024 was still subdued at 0.1% year-on-year, from a year earlier's 1.5% expansion, and indicates difficulties in maintaining economic momentum. Although the Q4 numbers were encouraging, there are still issues lurking when it comes to inflationary pressures and consumer confidence
Technical Analysis of GBP/JPY
The GBP/JPY pair is trading below 34 and 55 EMA (Short-term) and 200 EMA (long-term) on the 4-hour chart, confirming a bearish trend. Immediate resistance is at 191.50; a breach above this level targets of 192.21/193/193.36/194/195/195.60/196.25/197. Downside support is at 190.35 with additional levels at 189.80/189/188.
Market Indicators
CCI (50)- Bullish
Directional movement index - Neutral
It is recommended to buy on dips around 190.48-50 with a stop-loss at 189.80 for a TP of 193.
