GBP/JPY forecast this week: In my previous GBP/JPY update, I pointed out three bearish signals looming the pair. Now that those observations are confirmed, we are facing yet another jam-packed week of economic data coming up which could especially have an impact on the British Pound.
1- Technical Points: GBP/JPY Forecast This Week
Daily Time Frame: We have all three of the Ichimoku Kinko Hyo confirmations on this time frame, as the Chiko span just broke below the delayed cloud, GBP/JPY confirmed below the prevailing cloud, and the Kijun line crossed below the Tenkan line. The immediate Fibonacci support levels to watch out for are 136.85 and 133.76. The pair started Tuesday’s Asian session testing the pivot level of 139.20.
GBP JPY Forecast This Week – Daily Chart
Monthly Time Frame: The pair remains below the monthly Ichimoku cloud, and appears to be in the process of forming a double top chart pattern, with the tops laying on 144.33.
GBP/JPY Forecast This Week – Monthly Chart Technical Analysis
2- Fundamental Points/
UK Side: While market participants are just getting over last week’s UK elections, we have more market moving events coming up this week.
First up, we’ve got UK’s Consumer Price Index, which is the key measure of inflation, due on Tuesday’s London trading session. Analysts are expecting to see a meager 0.2% uptick in the May CPI reading, which should be enough to keep the annual figure unchanged at 2.7%.
Next is UK’s jobs data, scheduled for Wednesday June 14, 9:30 am GMT.In April, the U.K. economy shed 19.4K jobs and is expected to have lost 20.3K positions in May, but the unemployment rate is still projected to stay unchanged at 4.6%.
Thursday could turn out to be yet another Super Thursday, as UK’s retail sales, BOE rate decision and MPC minutes are all gonna shake-it, shake-it. The retail sales report should provide a clearer picture on consumer behavior, although this one might have a subdued impact on pound price action since it comes a few hours before the highly-anticipated BOE decision.
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