US Mortgage Applications 0.1% vs -0.6% prior 0 (0)

  • US mortgage
    market index +0.1 pct to 195.7 in week ended April 5
  • US mortgage
    purchase index falls 4.7 pct to 138.7 in April 5 week
  • US mortgage
    refinance index rises 9.9 pct to 498.3 in April 5 week
  • US average
    30-year mortgage rate rises 10 bps to 7.01 pct in April 5 week

This article was written by Arno V Venter at www.forexlive.com.

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GBPJPY Technical Analysis 0 (0)

GBP

  • The BoE left interest rates unchanged as expected but with Haskel and
    Mann this time voting for a hold instead of a hike.
  • The employment report missed expectations with an uptick
    in the unemployment rate and an easing in wage growth.
  • The UK CPI missed expectations across the board but with
    Services inflation remaining sticky, which continues to support the BoE’s
    patient stance.
  • The latest UK PMIs showed the Services PMI missing expectations
    slightly and the Manufacturing PMI beating.
  • The market expects the first rate
    cut in June.

JPY

  • The BoJ finally exited the negative interest rates
    policy
    as expected
    at the last meeting raising interest rates by 10 bps bringing the rate to a
    target between 0.00-0.10%. Moreover, the central bank scrapped the yield curve
    control and the ETF purchases, while maintaining QE in place.
  • The latest Unemployment Rate missed expectations although it
    continues to hover around cycle lows.
  • The Japanese PMIs improved further for both the
    Manufacturing and Services measures although the former remains in
    contractionary territory.
  • The latest Japanese wage data came in line with expectations.
  • The Tokyo CPI, which is seen as a leading
    indicator for National CPI, came in line with expectations.
  • The market expects another rate hike
    from the BoJ this year although the timing remains uncertain.

GBPJPY Technical Analysis –
Daily Timeframe

On the daily chart, we can see that GBPJPY bounced
on the 61.8% Fibonacci retracement level
near the lower bound of the rising channel where we had also the red 21 moving average for confluence. The
buyers extended the rally into the 193.00 handle and will certainly keep
targeting the upper bound of the channel around the 195.00 handle. The sellers,
on the other hand, will want to see the price reversing and breaking below the
lower bound to position for a drop into the 187.96 low.

GBPJPY Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that from a risk
management perspective, the buyers will have a much better risk to reward setup
around the trendline where
they will also find the 61.8% Fibonacci retracement level for confluence. The
sellers, on the other hand, will want to see the price breaking lower to
position for a drop into the lower bound of the channel eventually targeting a
break below it.

GBPJPY Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see more
closely the recent price action with the pair bouncing on the most recent swing
high level at 192.20. If we get a pullback from the current high, that’s where
the buyers should pile in with a defined risk below the 192.20 level to
position for a rally into new highs. The sellers, on the other hand, will want
to see the price breaking lower to position for a drop into the trendline
around the 191.50 level.

Upcoming Events

Today we get the US CPI report and the FOMC Minutes.
Tomorrow, we will have the US PPI and the latest US Jobless Claims figures. On
Friday, we conclude the week with the UK GDP and the University of Michigan
Consumer Sentiment Survey.

This article was written by FL Contributors at www.forexlive.com.

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