GBPUSD USDJPY Market Insight

GBP/USD 

The Bank of England kept interest rates unchanged last week for the first time since December 2021. Previously, the market's expectation that BOE would raise interest rates by a further 25 pips in 2023 was almost certain. However, on Monday, this expectation changed. The Pound had been boosted by expectations previously because the BOE would increase interest rate for longer than the European Central Bank and the Federal Reserve. 

  As we mentioned before, GBP/USD still dropped along with moving average system. Any rebound could be seen as opportunity to set short positions on H4 chart. On the other hand, MACD double line is trying to test extreme oversold area below zero axis, that means it is hard to rebuild upward trend recently. The reasonable tactic is to set sell limit around 1.2250, stop loss is compulsory.    

USD/JPY 

The Bank of Japan Governor's speech on Monday did not have any direct impact on yen. There is great uncertainty about the sustainability of wages and inflation, so the time to achieve the inflation target and simultaneously achieve the wage growth target has not yet emerged. Affected by the policies of the BOJ, the yield of the Japanese yen is below zero, it is preferred source of fund for investors to buy high yield currencies.  

 We can see USD/JPY is oscillating upwards and moving average system has become persistent supports for price rise on H4 chart. In addition, MACD histogram bar and double line is running above zero axis smoothly, it is good sign of uptrend. On the other hand, investors worry about unexpected intervention from BOJ, it should be vigilant to bet more fund on USD/JPY uptrend. The possible option is to set buy limit between 147.5 to 148.20, stop loss is necessary.