This is a break down analysis of GBPJPY after today's Bank of England Interest Rate Decision.
Fundamental Analysis:
- The BoE left the rates unchanged giving a minor lift to the GBP.
- JPY continues to work as a safe-haven under the current geopolitical conditions (coronavirus) and may work against the BoE lift on GBP.
Technical Analysis:
- The Resistance is set at 148.900 and the Support at 138.800
- The MA200 has the role of Support and the MA50 has just turned into a Resistance on the 1D chart.
- The RSI is on a bearish divergence since mid December 2019.
- The sequence is similar to the March 2019 top.
The above mix indicates that under the current geopolitical tension (China virus) demand for JPY as a safe heaven will continue to work against the pair. Assuming the RSI continues to be under a bearish divergence and the price will not break above the 1D MA50 by a wide margin, we expect the price to decline the lower support levels of 138.800 and 135.900 once 140.900 breaks.
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Fundamental Analysis:
- The BoE left the rates unchanged giving a minor lift to the GBP.
- JPY continues to work as a safe-haven under the current geopolitical conditions (coronavirus) and may work against the BoE lift on GBP.
Technical Analysis:
- The Resistance is set at 148.900 and the Support at 138.800
- The MA200 has the role of Support and the MA50 has just turned into a Resistance on the 1D chart.
- The RSI is on a bearish divergence since mid December 2019.
- The sequence is similar to the March 2019 top.
The above mix indicates that under the current geopolitical tension (China virus) demand for JPY as a safe heaven will continue to work against the pair. Assuming the RSI continues to be under a bearish divergence and the price will not break above the 1D MA50 by a wide margin, we expect the price to decline the lower support levels of 138.800 and 135.900 once 140.900 breaks.
If you like this idea give us a like, follow and share your thoughts in the comments section below. Remember to stay tuned for future technical analysis , news, updates, and more from PrimeXBT!