GBP/JPY: gains capped at hourly 200-MA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The bid tone around Sterling remained intact despite weak UK data, pushing the cross higher, but gains were capped at the hourly 200-MA located at 158.48 levels.

    Corrective forces overshadow weak UK data

    The chart driven factors – oversold on charts – managed to keep Sterling upbeat despite a weaker-than-expected UK manufacturing PMI report. The pair did shed few pips after the data release, but managed to take back losses and clock a daily high of 158.71, before falling back to 158.25 levels.

    Ahead in the day, the FX markets could be influenced by the US ISM manufacturing PMI release. Meanwhile, demand for safe haven JPY would be decided by the sentiment in the US stocks.

    GBP/JPY Technical Levels

    The immediate hurdle is seen at 158.48 (hourly 200-MA), which if taken out shall open doors for a rise to 159.11 (10-DMA). On the other hand, a breakdown of immediate support at 157.14 (5-DMA) would expose 154.72 (Feb 24 low).
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