GBP/JPY rises to near 190.30, BoJ decides to lift policy rates by 10 bps
19.03.2024, 03:52

GBP/JPY rises to near 190.30, BoJ decides to lift policy rates by 10 bps

  • GBP/JPY extends its winning streak despite hawkish BoJ.
  • BoJ board members decided to lift the interest rate to 0% from -0.1%.
  • Traders await consumer and producer price data from the United Kingdom.

GBP/JPY has rebounded from intraday losses to extend its winning streak, which commenced on March 12. The pair trades higher around 190.30 during Asian trading hours on Tuesday. The Bank of Japan (BoJ) board members opted to raise the interest rate by 10 basis points (bps) from -0.1% to 0% for the first time since 2007.

This decision marks the end of a negative interest rate era. It aligns with market expectations. The much stronger-than-expected pay hikes by major Japanese firms have already laid the groundwork for the BoJ to shift away from the decade-long stimulus measures.

In the United Kingdom (UK), inflation is showing signs of moderation, yet the Bank of England (BoE) maintains a cautious stance until Consumer Prices return to the 2% target. It is expected that the BoE will keep interest rates unchanged at 5.25% during Thursday's meeting. Traders are eagerly awaiting consumer and producer price data scheduled for release on Wednesday.

Due to softer Consumer Inflation Expectations on Friday, which increased by 3.0% but slightly lower than the previous uptick of 3.3%, market speculation arose regarding a potential Bank of England (BoE) rate cut. Investors anticipate the BoE to commence rate cuts in August, with one or two additional cuts by year-end. Such sentiment could have weakened the Pound Sterling (GBP) and undermined the GBP/JPY cross.

GBP/JPY

Overview
Today last price 190.57
Today Daily Change 0.71
Today Daily Change % 0.37
Today daily open 189.86
 
Trends
Daily SMA20 189.9
Daily SMA50 188.4
Daily SMA100 186.17
Daily SMA200 184.37
 
Levels
Previous Daily High 190.16
Previous Daily Low 189.54
Previous Weekly High 190.03
Previous Weekly Low 187.96
Previous Monthly High 191.33
Previous Monthly Low 185.23
Daily Fibonacci 38.2% 189.92
Daily Fibonacci 61.8% 189.78
Daily Pivot Point S1 189.55
Daily Pivot Point S2 189.23
Daily Pivot Point S3 188.93
Daily Pivot Point R1 190.17
Daily Pivot Point R2 190.47
Daily Pivot Point R3 190.78

 

 

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