The British pound is on the defensive against the safe haven Japanese yen as we head into Tuesday’s trade session. The GBP/JPY currency exchange rate is edging lower trading near 115.10 yen as risk aversion continues in the global financial and Forex markets.
Financial market participants, with the absence of top tear economic data, are trading Omicron coronavirus pandemic (Covid-19) headlines. Today, CBI will publish their monthly industrial trend orders for the United Kingdom. Japan has no top tier economic data scheduled for publication overnight into Wednesday.
The world’s biggest economy, the United States, will publish their quarterly current account. The U.S. is also scheduled to release weekly crude oil inventory numbers. Gfk will publish their monthly consumer climate survey for Germany.
On Monday, the British pound did hit a low price point of 149.52 yen. The GBP/JPY Forex market the recovered higher towards the two hundred (200) day simple moving average before reversing course and inching lower again.
Daily British Pound Technical Analysis (GBP/JPY)
Looking at the above daily MT 4 price chart, the bears still appear to control the British pound. The GBP/JPY currency exchange rate is trading below 50, 100 and 200 daily simple moving averages. There is also an evening star candlestick formed between 15, 17 December.
With that said, the formation of the bearish evening star candlestick could see the GBP/JPY Forex pair challenging the 3 December low price point in play at 148.96 yen. The 20 July low price point lines up at 148.45 yen before the 26 February low price point of 147.70 yen.
On the upside, immediate technical resistance lines up at 20 December high price point at 150.55 yen. The next upside level lines up at the 17 December high price point at 151.70 yen. The 100 and 200 daily simple moving averages are merging near 152.30 to 152.50 yen.