The JPY crosses are moving again today!
Could the GBP/JPY head for another decline when the UK jobs number is released?
Before moving on to ICYMI, yesterday’s watchlist looked at the AUD/JPY consolidation breakdown following a downbeat Chinese CPI. Be sure to check if it’s still a good game!
And now for the main headlines that rocked the markets in the last trading sessions:
Headlines and recent economic data for the market:
UK Retail Controller BRC It rose from 3.7% year-on-year to 4.0% in June versus an expected figure of 4.2%, reflecting a slight pickup in consumer spending.
Federal Reserve official Meester He says there is no decision yet on policy actions in July, but notes that they need to tighten a bit in order to get inflation under control.
Australian Westpac Consumer Confidence Index It rose from 0.2% to 2.7% in July, indicating a strong improvement in optimism
NAB Australian Business Confidence Index It rose from -3 to 0 in June to indicate that conditions are no longer getting worse
Number of claimants in the UK Increased by 25.7K in June against an estimated increase of 20.5K in unemployment and previously decreased by 22.5K Unemployment rate increased from 3.8% to 4.0%
UK average income index It accelerated from an improved figure of 6.7% to 6.9% in the three-month period ended in May, beating consensus of 6.8% and pointing to stubborn wage inflation.
Price action news
Despite the lack of catalysts on deck, the Japanese Yen made strong gains against other foreign currencies in today’s Asian trading session.
Market watchers have likely been on the alert for possible currency intervention, as Japanese officials have been fretting and repeating that they are watching the movements of the currency markets closely.
The yen posted higher gains against commodity currencies, as risk-off flows may have picked up after some Fed officials talked about the possibility of tightening again in July.
ZEW Economic Index for Germany and the Eurozone at 9:00 AM GMT
RBNZ Monetary Policy Decision at 2:00 AM GMT (July 12)
Use our new profile Currency heat map To quickly see a visual overview of the forex market price movement! 🔥 🗺️
British pound / Japanese yen 15-minute forex Planned by TV
The pair has been in a steady decline, as its lower highs have been linked to a consistent downtrend line since late last week.
Another test of the resistance area, which lines up with the pivot point (182.00) and the previous short-term support, could be in the works.
However, the UK economy has just printed mixed jobs numbers, as a rise in claimants has led to another pickup in the unemployment rate.
This could mean a Guppy consolidation breakdown, which could send the pair below the near-term support at S1 (180.79) and to test the next floor at S2 (179.88).
On the other hand, passing trend line resistance could trigger a rush towards the next uptrend barriers at R1 (182.92) and R2 (184.13) if risk based flows return.
Just be sure to take notes Average daily fluctuations for the GBP/JPY pair 150 pips when trading this pair!
