Daily Technical Analysis May 23th 2024

1. GBP/USD Analysis:
News Summary:
The latest data released by the British Office for National Statistics showed that the CPI rose by 2.3% year-on-year in April, a sharp decrease from 3.2% in March, the lowest level in three years, but still higher than the 2.1% expected by economists. Although it seems to be close to the target, the inflation situation is still not optimistic. The service industry inflation closely watched by the Bank of England is as high as 5.9%, which is almost unchanged from 6% in March. Markets trimmed bets on a rate cut from the BOE as unexpected bad news emerged on progress in fighting inflation.

Trend Analysis:
We can see GBP/USD peaked and then fell; it hovered above the 48 hours moving average. In addition, the MACD double line and energy column began to expand downward. The buy limit could be placed, stop loss is necessary.

Today's Key Price Levels:
Key Support Levels: [1.2640]
Key Resistance Levels: [1.2830]
Pivot Points [1.2690]

2. USD/JPY Analysis:

News Summary:
The Bank of Japan is likely to raise policy rates at its next policy meeting, while quantitative tightening may be on the agenda. That's because recent comments from the BOJ governor and other senior officials suggest there is little tolerance for upside risks to inflation. The BOJ is likely to raise interest rates by 15 basis points to 0.25% before another 25 basis point hike in October.

Trend Analysis:
We can see USD/JPY H4 level fluctuated upwards and ran above the 48 hours moving average. However, the MACD histogram bar and double line shrank near the zero axis again. The sell limit could be used, stop loss is mandatory.

Today's Key Price Levels:
Key Support Levels: [155.30]
Key Resistance Levels: [158.00]
Pivot Points [157.20]