Source: PaxForex Premium Analytics Portal, Technical Insight
The yen suffers from a global inflation shock from the supply side, because the Bank of Japan (BoJ) might not react - unlike most other G7 central banks. In that regard, only some yen recovery seems likely, according to economists at Commerzbank.
GBP/JPY,D1
Pivot: 163.35
Analysis:
As long as price is above 158.00 follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 163.35
- Take profit 1: 165.00
- Take Profit 2: 167.00
Alternative scenario:
If the level of 158.00 is broken-down, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 158.00
- Take profit 1: 155.15
- Take profit 2: 152.85
Comment:
RSI indicates the potential for an uptrend in the medium term.
Key levels:
| Resistance | Support |
| 168.50 | 158.00 |
| 167.00 | 155.15 |
| 165.00 | 152.85 |
