Fed Interest Rate Decision Aftermath and Analysis on GBPJPY

Key Highlights

  • British Pound suffered losses recently not only against the US Dollar, but also against the Japanese Yen.
  • GBPJPY pair traded lower and looks set for more losses as there are many hurdles on the way up for the pair.
  • In New Zealand, the RBNZ Interest Rate Decision was announced by the Reserve Bank of New Zealand in which the central bank made no changes in the interest rates.
  • Fed interest rate decision was the highlight of yesterday which helped the US Dollar to gain some traction.

GBPJPY Technical Analysis

The British Pound faced a lot of selling pressure against the Japanese Yen, as the GBPJPY pair traded lower towards the 184.00 area. There are a couple of bearish trend lines formed on the hourly chart, which are acting as a barrier for buyers and stalling gains.

GBPJPY

Recently, the pair made an attempt to trade higher, but found resistance around the first bearish trend line. It was also coinciding with the 50.0% Fib retracement level of the last drop from the 186.0 high to 183.89 low.

Moreover, the 100 and 200 hourly simple moving averages are also positioned around the trend line and resistance area to act as a hurdle.

Fed Interest Rate Decision Aftermath

Yesterday, during the NY session, the Board of Governors of the Federal Reserve announced the interest rate. The central bank decided to keep the interest rates at 0.25%. The most important point to note from the release was the fact that the US Federal Reserve came out a bit hawkish this time, which helped the US Dollar and took it higher against most major currencies. The FOMC statement highlighted that officers had an insight on the latest weak employment figures. Overall, the statement was favoring the US Dollar and so was the reaction.

RBNZ Interest Rate Decision

There was another rate decision lined up during the Asian session, as the RBNZ Interest Rate Decision was announced by the Reserve Bank of New Zealand. The central bank made no changes in the interest rates and the rate statement was on the neutral side, failing to help the Kiwi dollar. There was a downside reaction in the NZDUSD pair and it looks like the pair might head further lower.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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