Forex Marketz Daily Forex News – Fully Markets Update
Looking at the GBP/JPY currency exchange rate, the British pound is challenging the 21 hour simple moving average as price action, on Tuesday broke above 151 yen for the first time since April 2018. The GBP/JPY Forex market is trading around 150.780 to 185.785 during the early Asian trade session.
Today, Japan will release monthly factory gate prices. The United Kingdom has nothing on their economic calendar. France is releasing monthly industrial production numbers. The United States will release key inflation numbers. The U.S. will publish core and headline monthly consumer price index (CPI) data.
The U.S. House of Representatives voted, on Tuesday, to advance President Joe Biden’s massive $1.9 trillion coronavirus pandemic rescue package. Today the House will vote on the bill. It is expected to pass along party lines. Once the bill is passed, as early as today, President Joe Biden can sign it into law.
This is one of America’s largest. Fiscal aid packages sixty years. It will also give President Biden and the Democrats a big legislative victory.
Daily British Pound Technical Analysis (GBP/JPY)
Looking at the above one hour MT 4 price action chart, the British pound has gained nearly seven percent, year to date against the safe haven Japanese yen. Forex traders are supporting at risk assets over safe havens thanks to Britain reopening slowly and a decrease in daily coronavirus infections, hospitalizations and deaths.
The GBP/JPY is showing some price exhaustion at this level. The relative strength index is within overbought territory but back below seventy (70). A daily close above the 21 hour simple moving average could bring another corrective bounce challenging 151 yen.
Forex traders should note that there is still a current hourly candle with a long upper wick. This is another bearish signal. With that said, a daily close below 150.78 yen opens the door to challenge 150.73 yen next. The next downside barrier lines up at 150.50 yen.
