GBP/JPY is the currency pair with the highest volatility, as a result of which it is sometimes quite difficult to determine the trend. We remember that the pound was under pressure due to excessively high inflation of over 10%, pressure on the economy as a result of Brexit and the consequences of the pandemic. At the same time, the yen is also weak and cannot find enough support even against the backdrop of all the risks for the global economy. How to make money today trading with this currency pair? Let's search for answers in this review.
We recently learned that Kazua Ueda could become the head of the Bank of Japan, who considers the current extremely soft monetary policy correct, so there is no need to wait for changes here. On the other hand, we see the Bank of England, which, in order to fight inflation, has no choice but to raise the rate, although it is already very high. We also see the US Federal Reserve, which also raises their rate, which can serve as an example for others.
As for macroeconomic reports, we can see the growth of business activity in the UK above forecasts in both services and industry sectors, and economists expect GDP growth in February. It is possible that the minimum in the economy has been reached, and ahead of the UK is waiting for a period of recovery. At the same time, in the Japanese economy, situation isn't so optimistic though all the important reports for Japan that could support the JPY remain ahead next week.
Technical analysis tools indicate the growth of the rates and signal the effectiveness of purchases in the short and medium term. We also see on the daily chart an uptrend and an attempt to recover the uptrend this year. Based on this, we consider the deals to Buy to be the best today.
