OctaFX | OctaFX Forex Broker
Open trading account
Back

GBP/JPY finds support at 50-DMA ahead of UK data

FXStreet (Mumbai) - The drop in the GBP/JPY pair appears to have stalled around the 50-DMA located at 185.12 levels as investors await the UK industrial production data.

Risk-off supports Yen

The China-driven risk-off saw an increase in demand for the safe haven Yen, due to which the cross fell to a low of 185.06. The major equity index futures in Europe are pointing to a weak opening. Hence, the pair has not seen a notable recovery so far.

The investors now await the UK data, which could show the industrial production and manufacturing production stalled in October.

GBP/JPY Technical Levels

At 185.26, the immediate resistance is seen at 185.38 (5-DMA), above which the pair could target 185.81 (hourly 50-MA). On the other hand, a break below 185.21 (hourly 200-MA) would expose 184.50 (Oct 22 low).

China’s November trade balance at $54.10 billion; exports weakened more than expected

China's trade performance continued to remain sluggish in November. Exports declined worse-than-expected 6.8 percent on year on year comparison, marking fifth straight month of decline. Imports on the other hand declined 8.7 percent. Imports fell for the 13th drop in a row. Slide in imports were however lower than expected. This is possibly because of a slight improvement in Chinese domestic demand.
Read more Previous

Divergence of monetary policy making dollar bulls nervous - BBH

Research Team at BBH, suggests that the divergence of monetary policy remains very much in place, and it is not fully priced in, and they wonder if it really can be discounted.
Read more Next
Start livechat