Source: PaxForex Premium Analytics Portal, Technical Insight
Kuroda is in a catch-22 situation. Should he raise interest rates despite persistent negative core inflation? That, too, would be futile. The preferred instrument would be one that specifically targets yen exchange rates. And the first tool to think about would be intervention in the foreign exchange market.
GBP/JPY,D1
Pivot: 167.60
Analysis:
As long as price is above 158.00 follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 167.60
- Take profit 1: 168.40
- Take Profit 2: 170.00
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 |
| 171.50 | 158.00 |
| 170.00 | 155.15 |
| 168.40 | 152.85 |
