GBP/JPY capped by 159.00

FXstreet.com (Athens) – The GBP/JPY is trading at 158.53, which coincides with its 20-hourly EMA (also laying at 158.53), within a tight range trading.

GBP/JPY slightly lower since Asian opening; will the cross break of its range?

The GBP/JPY is now trading nearly 158.53 which is not far away from its daily opening at 158.60 area. What’s more, the Nikkei is just a plain 10% off its almost 6-year high of the 23st May of 2013, while the TSE launced a new index of high ROE companies. What’s more,, there are a lot of rumors and jitters on ‘Abenomics’ third arrow reforms, with a lots of more scepticable Japanese entrepreneurs to be severely concerned with Japan’s PM Abe efforts to put bans on the support of the rice farmers, as well as on the on-line drug sales. Last but not least, the Nikkei is now down by a 0.5% at 14265.34 and maybe that is one key-reason for the past hour downwards trend of the cross.

Technical Perspective on the GBP/JPY

The cross is mostly trading sideways amidst the Asian trading session after three “green” days. It seems that the cross should firstly overcome the 159.44 area (38.2% Fib expansion) which might expose the pair near to 160.90 (50% Fib exp.), in order to show that has gained a solid uptrend momentum to touch 2009 highs of 163. On the downside, market participants should be aware of a reversal below 157.34 (50-daily MA), which could push the pair even more, near the 155.25 area ((38.2% Fib retracement).

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