Our free forex signal service today looks at the GBP/JPY pair and we have the entry, stop and take profits levels for you.
Reinforcing its exposure through bullish dominance, the GBP/JPY pair moved above 151.80 to provide additional support against bullish trades and stopped at 153.00, adding to the ongoing positive sentiment, which could hit 154.50 and then 156.10.
The risk of a trend reversal would arise if the price were exposed to a strong negative pressure, which would cause it to slide below 151.80 in anticipation of further attempts at downward correction, which could initially hit the 149.70 mark.
The expected trading range for today is between 152.35 and 154.50.
The expected trend today is clearly bullish.
Data releases can further boost the GBP/JPY price
UK CPI data is due on the day that may impact the directional bias in the pair. Due to lower-than-expected GDP figures, we can expect the UK CPI to print lower than expected numbers. However, it seems like the market has already priced in dismal data effects.
According to news sources, Japan fears supply chain disruptions due to the resurgence of Covid in countries such as Malaysia and Indonesia. The Asian major is already heavily criticized for hosting the Olympics when the country is hit by the pandemic.
Looking ahead, Japanese industrial production in May, which is expected to remain unchanged at 22.0%, could provide immediate volatility for the GBP/JPY pair ahead of the UK CPI, which is expected to reach 2.2 % versus 2.1% direction in June. Furthermore, in the hope of increasing price pressure on the UK economy, the Bank of England may consider a recent cautious outlook, which could lead to higher prices for the GBP/JPY. However, risk catalysts like Brexit and Covid are becoming increasingly important to keep an eye on the short-term direction.
Let’s check out our free forex signal.
Instrument: GBP/JPY
Order: BUY STOP
Entry price: 153.55
Stop Loss: 152.24
TP1: 156.00
Recommended Risk: 1%
Risk / Reward Ratio: 1:1.87
Signal validity period: Good until cancelled
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Saqib Iqbal
