Forex Marketz Daily Forex News – Fully Markets Update
The British pound is looking firm against the safe haven Japanese yen as price action trades around 155 yen heading into Wednesday. The benchmark GBP/JPY Forex market saw its largest daily drop since 30 April overnight.
The short-term ten (10) day simple moving average held and the British pound recovered a bit. Near the 10 day simple moving average is a rising trend line in play since the end of April.
Today is the proverbial economic calendar quiet before the storm. The United States, on Thursday, will release the private ADP non-farm payroll change for May. On Friday, the U.S. Labor Department will publish their monthly non-farm payroll (NFP), employment rate, labor participation rate and average hourly earnings. The only release on the U.S. calendar, for today, is the Federal Reserve Beige book.
Japan has a quiet economic calendar heading into Thursday. The United Kingdom will publish the private BRC shop price index and monthly mortgage approvals. Germany is releasing monthly retail sales data. The Eurozone is releasing monthly factory gate prices and Spain will release their monthly unemployment change.
Daily British Pound Technical Analysis (GBP/JPY)
Looking at the above daily GBP/JPY MT 4 price action chart, the British pound has near term technical support lining up at 154.60 yen. The rising trend line from 23 April is the next downside barrier. This technical layer of support is in play at 154.60 yen.
A sustained close below 154.60 yen opens the door for the technical layer of support in play at 153.50 yen. A sustained close below 153.50 brings the downside support at the April high price point of 152.40 yen into play next.
On the upside, the weekly high price point at 156 yen is the first key upside barrier to monitor. The next layer of technical resistance lines up at 156.10 yen with the 2018 high price point at 156.60 yen then coming into play.
