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GBP/JPY a double whammy on profit taking in Yen

FXStreet (Guatemala) - GBP/JPY is trading at 181.61, down -0.34% on the day, having posted a daily high at 183.40 and low at 181.44.

GBP/JPY is suffering with the Yen on the march across the board and a market place that has made up its mind about Sterling for the meanwhile at least. The pair has closed the bullish gap and has sunk through the 182 handle and is headed for a 200-pip loss at the start of the week. The USD/JPY was initially bid up to 117 but has miraculously lost ground right into the 115 handle and through stops. To start the week, for Japan, we got the GDP results that were -0.4% vs 0.5% expected and -1.9% previous and annualized came as -1.6% vs 2.1% expected vs -7.3% previous.

The GDP results were the trigger of the move in the Yen crosses despite them being very poor. The Nikkei also was trading heavy. Orders were likely triggered on profit taking in longer term USD/JPY longs and Japans stock market and this has been disastrous for the crosses. Later on in the week we will have the UK’s inflation data for October and this comes right after the BoE’s Quarterly inflation report last week, and also we will hear the BoE’s minutes. Markets are likely to stick to their guns on the pound while forecast for rate hikes have been put back towards the end of 2015, or possibly even further.

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