Pound-yen consolidates above ¥187The latest British job report on 15 April was generally quite positive with growth in earnings remaining high and claimants increasing less than expected. The focus for the yen remains on upcoming trade talks between Japan and the USA while monetary policy still seems somewhat uncertain. The Bank of Japan is likely to continue with ‘wait and see’ although some participants expect a hike in September.
¥186 seems to be the main short-term support based on the fairly strong reaction on 9 April. However, that hasn’t been clearly sustained since then although that day’s upward engulfing candlestick would have suggested possible ongoing gains. Japanese balance of trade late on 16 April GMT is unlikely to have a significant influence on the chart unless it’s particularly surprising. The 20 and 50 SMAs just below ¥191 probably mean resistance in that area. Upcoming British data like PMIs and retail sales could usher in a clearer direction.
This is my personal opinion, not the opinion of Exness. This is not a recommendation to trade.
