🏦Macroeconomic Overview
The UK economy is going through a bad period.
The fundamentals of the Japanese economy are stronger.
But GBP/JPY is at its highest level in the last 6 years, due to interest rate policy.
Japan follows an expansionary monetary policy because there is deflation.
Since inflation is very high in England, monetary tightening is going on.
However, inflation in Japan has reached above 2 levels. They can talk about inflation next week, or they can abandon negative interest rates.
⏳When We Examine the Price Chart on a Weekly Basis
The price completed the 5-wave elliot impulse wave action, which sustained from the 125 level to the 168 level.
According to technical analysis, a minimum of 5 waves is expected to retrace the price.
The next week is very critical in terms of interest rate decisions.
Last week, the price sold hard from the 168 resistance zone.
The UK economy is going through a bad period.
The fundamentals of the Japanese economy are stronger.
But GBP/JPY is at its highest level in the last 6 years, due to interest rate policy.
Japan follows an expansionary monetary policy because there is deflation.
Since inflation is very high in England, monetary tightening is going on.
However, inflation in Japan has reached above 2 levels. They can talk about inflation next week, or they can abandon negative interest rates.
⏳When We Examine the Price Chart on a Weekly Basis
The price completed the 5-wave elliot impulse wave action, which sustained from the 125 level to the 168 level.
According to technical analysis, a minimum of 5 waves is expected to retrace the price.
The next week is very critical in terms of interest rate decisions.
Last week, the price sold hard from the 168 resistance zone.