GBP/JPY heading towards 186.00 as dovish BoJ continues to crush the Yen – Crypto News – Crypto News
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Shifted downwards in the near-term unless bulls reclaim 164.00 Shifted downwards in the near-term unless bulls reclaim 164.00

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GBP/JPY heading towards 186.00 as dovish BoJ continues to crush the Yen – Crypto News

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  • The GBP/JPY is grinding towards 186.00 as Bank of Japan confirms dovish stance.
  • BoJ to continue massive bond purchases despite new operations.
  • GBP/JPY tips into a fresh 9-week high for Monday.

The GBP/JPY continues to climb with the Japanese Yen (JPY) continuing to get pushed into the floorboards by the Bank of Japan (BoJ) and its hyper-dovish policy stance.

BoJ Governor Ueda: Will continue massive bond buying even under new operation decided last week

BoJ Governor Kazuo Ueda confirmed early Monday that the Japanese central bank will continue with its hyper-easy monetary policy stance. Despite lifting the upper bound limit on their Yield Curve Control (YCC) mechanism, the BoJ reaffirmed their determination in buying as many Japanese government bonds as it needs to keep the yield curve tightly capped.

The BoJ also reaffirmed their fears that inflation and wage growth will slump below the central bank’s target levels, and have dedicated to keep the doors on easy monetary policy as wide as they need to support the Japanese economy.

UK data this week: thin data spread, speaking notes from BoE Gov Bailey

It’s a thin week on the economic calendar for the Pound Sterling (GBP), though S&P Global/CIPS Construction Purchasing Manager Index (PMI) for October came in above expectations, printing at 45.6 compared to the previous month’s 45.0, beating the median market forecast of a decline to 44.5.

UK BRC Life-For-Like Retail Sales for the year into October will print early Tuesday, forecast to tick down from 2.8% to 2.4%, and Pound Sterling traders will be keeping an eye out for Bank of England (BoE) Governor Andrew Bailey who will be giving a speech at a conference on Wednesday.

GBP/JPY Technical Outlook

The GBP/JPY’s push higher on Monday sets a new 9-week high for the pair, and the Guppy is set for a fresh challenge of the 186.00 handle.

The GBP has gained 2.6% against the Yen since last week’s low near 180.75, and the pair is making a clean break higher after getting hung up near the 50-day Simple Moving Average (SMA) and the 21-day Exponential Moving Average (EMA), with the two moving averages braiding around the 183.00 level.

GBP/JPY Daily Chart

GBP/JPY Technical Levels

 

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