GBP/JPY: offered below key fib, trades at 169.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 27, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/JPY cross ran into offers after it fell below 169.84 (23.6% fibo retracement of 188.81-163.98) and now trades just below 169.00 levels.

    Risk-off weighs

    The mining heavy UK’s FTSE index and other major European equities dropped on account of the weakness in oil and weak corporate earnings. The resulting risk-off weighed over the British Pound, while adding to the bid tone around the safe haven Yen.

    The cross set a daily high at 170.00 earlier today before falling below the 23.6% Fibo level and extending losses to trade at just short of its hourly 50-MA at 168.95.

    GBP/JPY Technical Levels

    The immediate support is seen at 168.95 (hourly 50-MA), under which the cross could drop to 168.50 (hourly 100-MA), which if taken out shall open doors for 167.68 (hourly 200-MA). On the other hand, a break above 169.84 (23.6% of 188.81-163.98 could send the cross back to 170.57 (Jan 15 high), above which the gains could be extended to 171 levels.
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