Forex Market: GBP/JPY daily trading forecast

Yesterday’s trade saw GBP/JPY within the range of 183.54-184.76. The daily high has also been the highest level since January 5th, when a high of 184.87 was recorded. The pair closed at 183.73, ticking down 0.01% on a daily basis.

At 7:38 GMT today GBP/JPY was up 0.14% for the day to trade at 184.11. The pair touched a daily high at 184.20 at 7:40 GMT.

Fundamentals

United Kingdom

Mortgage lending by the BBA

The number of home loans in the United Kingdom, issued by the British Bankers’ Association (BBA), probably increased to 36 000 in January from 35 667 in December. The latter has been the lowest number since April 2013, when 33 000 loans were issued. The BBA features the major banks in the country, which account for almost 60% of overall mortgage lending. The number of mortgage loans is considered as a leading indicator in regard to UK housing market conditions. As growth in mortgage lending signifies a healthy housing sector, which also contributes to overall economic activity, in case the number of loans rose more than projected, this would boost demand for the sterling. The BBA is to publish the official figure at 9:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 184.01. In case GBP/JPY manages to breach the first resistance level at 184.48, it will probably continue up to test 185.23. In case the second key resistance is broken, the pair will probably attempt to advance to 185.70.

If GBP/JPY manages to breach the first key support at 183.26, it will probably continue to slide and test 182.79. With this second key support broken, the movement to the downside will probably continue to 182.04.

The mid-Pivot levels for today are as follows: M1 – 182.42, M2 – 183.03, M3 – 183.64, M4 – 184.25, M5 – 184.86, M6 – 185.47.

In weekly terms, the central pivot point is at 183.01. The three key resistance levels are as follows: R1 – 184.57, R2 – 185.84, R3 – 187.40. The three key support levels are: S1 – 181.74, S2 – 180.18, S3 – 178.91.