• 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.