Global macro analysis for 27/04/2017:
During the overnight press conference, the Bank of Japan presented its outlook for the economic growth for 2017 - 2018. Policymakers revised their projections and currently they expect real gross domestic product (GDP) to expand 1.6% in the fiscal year that began in April, higher than the 1.5% predicted in January. Nevertheless, the bank lowered its core consumer price index growth outlook to 1.4% from 1.5% in the same period. The policymakers also vote to keep the interest rate gegative at the level of -0.1%, which was widely expected by the market participans. Moreover, the policymakers voted to continue purchasing Japanese government bonds so that the 10-year JGB yield would remain at 0.0%. In consluiosn, having upgraded the GDP forecast from 1.5% to 1.6%, the BoJ met global investors expectations. So, no surprises so far here.
Let's now take a look at the GBP/JPY techcnial picture on the daily timeframe. After a breakout above the golden trend line, bulls manage to push the price towards the 61%Fibo at the level of 143.52. If this level is violated, then the next technical resistance will be seen at the level of 144.75. The bullish bias is supported by strong momentum and no sign of overbought market conditions has appeared yet.
