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GBP/JPY under a bear attack, nears 130 handle

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Sterling bears are flexing their muscles after the release of UK manufacturing PMI release, courtesy of which the GBP/JPY cross has extended losses to 160.23 levels.

    10-DMA is now resistance

    Cross has re-established 10-DMA as a resistance. GBP is being offered across the board after the PMI printed weaker than estimate and stayed around 34-month low, indicating the activity may easily fall into contraction if Brexit fears rise ahead of EU referendum.

    Meanwhile, drop in the equity markets is ensuring the bid tone around JPY remains intact. The pair currently trades around 160.25 levels.

    GBP/JPY Technical Levels

    The immediate support is seen at 160.00 (zero figure), under which the losses could be extended to 158.44 (Mar 22 low). On the other hand, a break above 160.55 (10-DMA) would expose 161.43 (5-DMA).
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