Daily Technical Analysis

Introduction: 

Welcome to our daily technical analysis of the financial markets, focusing today on GBP/USD and USD/JPY. Let's dissect the latest news, market trends, and crucial price levels to watch out for.  

1. GBP/USD Analysis: 

News Summary: 

One of the main challenges the pound facing is market expectations for contraction in the UK economy. In addition to economic issues, geopolitical issues also complicate matters. As a result, the US dollar, often considered as safe currency, has attracted strong interest from investors who are seeking stability amid uncertainty. Volatility remains important factor of foreign currency market and caution must be taken when considering the outlook for the Pound.  

Trend Analysis: 

We can see GBP/USD has risen on H4 chart, however, due to market turmoil, the uptrend may be reversed soon. The geopolitical conflict has made the foreign exchange market a risky place, sellers are taking advantage of short-term rallies to profit. On the other hand, the main factor to drive these market dynamics is US dollar interest rate differential. The reasonable tactic is to set sell limit or selling, stop loss is necessary.

Today's Key Price Levels: 

Key Support Levels: [1.2100] 

Key Resistance Levels: [1.2270]

Pivot Points [1.2230]

2. USD/JPY Analysis:  

News Summary: 

The International Monetary Fund (IMF) said the recent decline of Japanese yen was driven by fundamentals and was not consistent with any considerations calling for authorities to intervene in currency markets. On the other hand, the yen depreciation is driven largely by interest rate differentials, reflects economic fundamentals and the Bank of Japan insists on easing policies to produce stable inflation. IMF did not see key criteria that warranted foreign currency intervention including market dysfunction, financial stability risks or runaway inflation expectations.  

Trend Analysis: 

We can see USD/JPY is oscillating around 150.00 and has stood above 48 hours moving average on H4 chart. In addition, the MACD histogram bar and double line is shrinking, which is a sign of further rebound. However, it should be noted that sudden intervention from BOJ, so buy limit is possible strategy, stop loss is compulsory.   

Today's Key Price Levels: 

Key Support Levels: [148.20] 

Key Resistance Levels: [151.00]

Pivot Points [149.00]