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GBP/JPY trims gains, drops below 173.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone around GBP weakened despite upbeat UK PMI manufacturing, pushing the GBP/JPY below 173.00 levels.

    Rejected at 38.2% Fibo levels

    The cross was offered after it failed to take out 173.45 (38.2% of 188.81-163.98). An uptick in the UK manufacturing activity in January as shown by the PMI report failed to support the currency.

    Meanwhile, the slide in the JPY witnessed on Friday stalled on account of the drop in the European equities. The pair now trades around 172.80.

    GBP/JPY Technical Levels

    The immediate resistance is seen at 173.45 (38.2% of 188.81-163.98), above which the cross could target 174.88 (Apr 14, 2015 low). A break higher would expose 175.84 (10-DMA). On the other hand, a break below the immediate support at 172.42 (daily low) would open doors for a drop to 172.00, which if taken out could send the cross lower to 171.17 (weekly 5-MA).
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