7 May 2015
GBP/JPY hit session low of 180.93
FXStreet (Mumbai) - The GBP/JPY extended the drop to hit a low of 180.93 as the election uncertainty forces the investors to ditch the British Pound in favor of other safe haven asset like the Japanese yen.
GBP/JPY: Will it drop to its 200-DMA?
The pair could extend the drop to its 200-DMA located at 180.39 in case the predictions post 10.00 pm UK time starts indicating a possibility of a hung parliament. However, the losses may be erased quickly as well, since political expert say whoever wins the election is likely to negotiate and quickly form a coalition government.
In the meantime, the pair may also take cues from the weekly jobless claims data in the US. The UK Halifax House Price index released earlier today was largely ignored by the markets.
GBP/JPY Technical Levels
The immediate resistance is located at 182.15, above which gains could be extended to 182.77. On the flip side, a break below 180.93 could push the pair down to 180.39 (200-DMA).
GBP/JPY: Will it drop to its 200-DMA?
The pair could extend the drop to its 200-DMA located at 180.39 in case the predictions post 10.00 pm UK time starts indicating a possibility of a hung parliament. However, the losses may be erased quickly as well, since political expert say whoever wins the election is likely to negotiate and quickly form a coalition government.
In the meantime, the pair may also take cues from the weekly jobless claims data in the US. The UK Halifax House Price index released earlier today was largely ignored by the markets.
GBP/JPY Technical Levels
The immediate resistance is located at 182.15, above which gains could be extended to 182.77. On the flip side, a break below 180.93 could push the pair down to 180.39 (200-DMA).