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GBP/JPY suffers due to risk-off and weak UK data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/JPY pair fell to a low of 172.94 on a weaker-than-expected UK data and risk-off in the equities, before recovering slightly to trade around 173.30 levels.

    Hovers around hourly 50-MA

    The cross is trading around the hourly 50-MA currently seen at 173.28. Sterling came under fire, while the bid tone around the safe haven JPY gathered pace as the European stocks tracked oil prices lower. The offered tone around GBP strengthened further after the UK construction PMI for Jan missed estimates.

    The cross remains at the mercy of the overall market sentiment as the data calendar in the US is light.

    GBP/JPY Technical Levels

    The immediate resistance is seen at 173.46 (38.2% of 188.81-163.98), above which the cross could target 174.17 (Friday’s high). On the other hand, a break below 172.42 (previous day’s low) would open doors for a slide to 171.71 (hourly 100-MA).
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