OctaFX | OctaFX Forex Broker
Open trading account

GBP/JPY is trying to rise from knees

FXStreet (Moscow) - GBP/JPY took off from Asian low at 170.86 and made its way above 171.00 on short covering

Will the sun shine over GBP/JPY again?

GBP/JPY attempts to reverse heavy losses of the previous week crashed against GBP sell-off across the board. Obviously, GDP weakness is more powerful that JPY decline now. It means that during European session the fate of the cross will de defined by broad sentiments towards UK currency. Though the UK macroeconomic calendar is empty today, which gives us hope that GBP bears will leave the currency in peace for a while and allow the cross to recover from deeply oversold levels. Now that GBP/JPY is above 171.00, upside correction may gain traction towards initial target of 171.44

What price levels and patterns have to be considered?

Spot is presently trading at 171.12, and next resistance can be seen at 171.19 (Hourly 20 EMA), 171.22 (Daily High), 171.44 (Hourly 100 SMA), 171.46 (Daily Classic PP) and 171.79 (Weekly Classic PP).

Next support to the downside can be found at 170.91 (Daily Open), 170.91 (Monthly Low), 170.91 (Weekly Low), 170.89 (Daily Low) and 170.86 (Yesterday's Low).

Fitch: Japan weathering sales tax rise, wage growth key

According to Fitch ratings agency, Japan is weathering the sales tax rise, although it warns that wage growth is key, noting it has failed to accelerate convincingly. Fitch also added that Japan's lasting fiscal consolidation not yet assured.
Read more Previous

Asia Recap: NZD firmer, JPY main loser

The Kiwi ends Asia as the main winner, despite the fact that gains were far from impressive considering the upbeat NZ retail sales release, which under a different set of circumstances (sentiment) would have probably prompted up the currency quite a bit further.
Read more Next
Start livechat