GBP/JPY rebounds from 23.6% Fibo support

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Sterling was sold after BOE Carney’s comments, pushing GBP/JPY to 160.32 (23.6% of 175.02-155.78) before the cross recovered to 160.80 levels.

    Weak stocks cap recovery

    The risk-off mood is capping the recovery since flight to safety is keeping the demand for Yen intact. The major US index futures are pointing to a weak opening. Consequently, the cross is having trouble to extend recovery above 160.80 levels.

    BOE’s Carney said Pound could take a hit on Brexit, which led the currency lower across the board. However, losses in Cable were restricted around 1.42 handle. Therefore, the cross managed avoid losses below 160.32 levels.

    GBP/JPY Technical Levels

    The immediate resistance is seen at 160.96 (hourly 100-MA), above which the cross could target 161.39 (hourly 50-MA). On the other hand, a break below 160.32 (23.6% of 175.02-155.78) would open doors for a sell-off to 159.37 (hourly 200-MA).
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