GBP/JPY is poised for a weekly drop

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The GBP/JPY is set to end the two-week winning streak mainly on account of a sharp rebound in Yen following the post-BOJ drop.

    Trades below key Fib level

    As of now, the pair is trading below a key Fibo level – 169.84 (23.6% of 188.81-163.98). The cross is down for the fourth consecutive session.

    The Japanese Yen made a sharp comeback as the financial markets failed to sustain the BOJ-led rally. The risk-off helped the Yen take back losses triggered by BOJ’s negative rate surprise of last Friday. The Sterling side of the story did not help matters either as the cable trimmed gains despite slightly hawkish BOE.

    GBP/JPY Technical Levels

    The immediate support is seen at 169.00, under which the losses could be extended to 168.56 (Jan 27 low). On the other hand, a break above 170.00 could see the pair re-test 170.53 (daily high).
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