Forex Market: GBP/JPY forecast for Monday

During Friday’s trading session GBP/JPY traded within the range of 171.81-172.19 and closed at 172.05.

Fundamental view

At 23:50 GMT on April 20th Japans Ministry of Finance will report on countrys trade balance in March. In February the deficit was 800.3 billion JPY, as annualized exports rose 9.8% and annualized imports climbed 9.0%. At the same time, Japans seasonally adjusted merchandise trade balance produced a deficit at the amount of 1,133.2 billion JPY in February.

Nation’s trade balance reflects the difference in value between exported and imported goods during the respective period. A positive balance signifies a trade surplus and a negative balance signifies a trade deficit. Export demand has a direct link to demand for the national currency and also causes an impact on levels of production. In case Japan’s trade balance deficit contracted more than projected in February, this would have a bullish effect on the yen.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/JPY manages to breach the first resistance level at 172.22, it will probably continue up to test 172.40. In case the second key resistance is broken, the pair will probably attempt to advance to 172.60.

If GBP/JPY manages to breach the first key support at 171.81, it will probably continue to slide and test 171.64. With this second key support broken, the movement to the downside will probably continue to 171.46.