GBPJPY has seen a mid-rated rally from a low of 151.070 to a weekly close at 157.019. As previously highlighted, numerous events could have led to the bullish move. For a recap, GBPJPY is generally in a Bearish Trend; the bullish move was triggered by the slowed aggression in the Russian-Ukraine situation, the Dollar Index Behavior, and the normal trend-making behavior of the markets (Low-low, high-low).

Support and Resistance

Support

Support One: 152.84

Support Two: 151.85

Support Three: 148.76

Resistance

Resistance One: 156.62

Resistance Two: 158.23

Resistance Three: 160.33

Events with Potential of Triggering Volatility in Coming Week

The events include the GBP Core Inflation Rate MoM (Feb), Inflation Rate MoM (Feb), and Inflation Rate YoY (Feb). The events will happen on March 23rd, 2022. Others include the BoJ Monetary Policy Meeting Minutes, the Extraordinary NATO Summit on March 24^th, and the Market Services/Composite/Manufacturing PMI (Mar). However, it is crucial to look into the influence of the Dollar Index in the coming week as it has the potential to trigger volatility that will shake off the GBPJPY trend. Among the events to pay attention to are the Feb Chair Powell Speech on 23^rd, the New Home Sales (MoM (Feb), and the New Home Sales.

Another situation to keep a close eye on is the Russian-Ukraine conflict. As of Sunday, March 20th, 2022, the Russian Troops were attacking the Ukrainian town of Makarov in the Kyiv region. A complete capture of Kyiv will see the markets rally for the better part of the week (Weakening the GBP). Read More about War and MarketVolatility: An Economic Telescope

GBPJPY Analysis and Market Trend

Generally, the GBPJPY pair has the potential of seeing an area below 151.070 and below. By the close of the month, the pair will be evolving around 140. xxx as it waits to shoot up to 240. xxx in coming months. As per the current situation, Analytic Dave is Bear Biased on GBPJPY.