GBP/JPY: Guppy consolidating ahead of Japan GDP data

• Cohn, Trump’s top economist resigns and triggers fear in the Asian session.

• Traders waiting for Bank of Japan meeting on Thursday and Friday.

The GBP/JPY is trading at around 146.80 down 0.50% as the New York session kicks off while risk on mood persist with North Korea proposal to denuclearize in exchange for the communist regime continuity. The early Asian session saw strength in the Yen as Cohn, Trump’s top economic adviser resigns. 

Coming up next for Japan is the set of Gross Domestic Product data at 23.50 GMT. However, the key event of the week for Japan is most likely on Thursday and Friday with the Bank of Japan meeting. The market participants are awaiting any hints on quantitative easing after Governor Kuroda announced last week he might end stimulus in the fiscal year 2019. 

On the UK macro front, coming up on Friday are the industrial production and trade data for January. 

Earlier on Wednesday in UK, Halifax House Prices m/m came in above expectation at 0.4% vs 0.3% and at 1.8% vs 1.6% y/y. 

In the European session, the Guppy formed an intraday double bottom close to the S1 pivot point and has gained about 60 pips since then as the New York session kicks off. Intraday resistance is seen at the 147.00-147.10 area with the high of the day resistance coupled with the 100 and 200-period simple moving averages. If this resistance is taken out, watch initially for the 147.40 resistance as it was a consolidation area on Tuesday and then to 147.66 which is the R1 pivot point. The RSI is not yet in overbought territory on the 15-minutes chart. If the 147.00 area fails then watch for support at S1 pivot point at 146.20 then 145.60 with S2 pivot point. 

GBPJPY 15-minutes