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GBP/JPY hovers near 2-year lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - GBP/JPY turned lower and fell to challenge 2-year lows scored last week, as the pound weakened across the board following dovish comments from BoE Governor.

    Mr Carney said on Tuesday that the UK economy isn't yet ready for an increase in interest rates, as growth has slowed and there are little price pressures.

    GBP/JPY turned south and retraced early intraday gains, falling nearly 300 pips to a low of 166.32, although it managed to hold above Friday’s 2-year through of 166.23. At time of writing, the pair is trading at 166.75, down 0.17% on the day.

    The British pound remains under pressure and among the worst performers so far in 2016 amid fears of slowing recovery in the Uk and uncertainty surrounding a possible Brexit.

    GBP/JPY levels to watch

    As for technical levels, next supports could be found at 166.23/15 (Jan 15 low/Feb 7 2014 low) and 165.04 (Feb 6 2014 low). On the flip side, resistances are seen at 169.74 (10-day SMA), 170.00 (psychological level) and 170.55 (Jan 15 high).
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