The GBP/JPY trades highly volatile after Trump tariff announcement.It hits an high of 195.78 yesterday and is currently trading around 193.62. Intraday trend is bearish as long as resistance 196 holds.
Tariff Implications for the UK: A Bearish Cloud
With Donald Trump's new tariff policy, the United Kingdom (UK) will be subject to a 10% tariff on all U.S. imports, raising UK exporters' costs, but lower than the EU's 20% tariff, possibly providing a relative benefit. The government of the UK is intent on striking a trade deal with the U.S. to counterbalance the impact of the tariffs, as Business Secretary Jonathan Reynolds stressed the need to steer clear of a trade war while reserving all possibilities to safeguard UK interests. This action adds to international trade tensions that can result in higher protectionism and economic uncertainty globally.
Technical Analysis: Mixed Signals with a Bearish Lean
The GBP/JPY pair is trading below 34 and 55 EMA (Short-term) and above 200 EMA (long term on the 4-hour chart, confirms a mixed trend. Immediate resistance is at 194 ,a breach above this level targets of 195/196. Downside support is at 192 with additional levels at 191.70/191/189.80/188.75/188/187.25/186/185.
Market Indicators
CCI (50)- Neutral
Directional movement index - bearish
It Is good to sell on rallies around 195 with SL around 196 for a TP of 190.
