GBP/JPY – selling again staling at 23.6% Fibo

GBP/JPY ran into offers near 154.00, but the subsequent sell-off is once again struggling to take out 154.23 (23.6% of 162.60-151.64).

Yen gaining after earthquake news

Japan has been hit by largest earthquake since 2011 and that has strengthened the bid tone around Yen. Moreover, repatriation of overseas income to fund rehabilitation effort increases demand for Yen.

Meanwhile, Cable failed to take out hourly 200-MA again despite dovish commentary from Fed officials and slower rise in inflation. Consequently, the cross fell from 154.93 to 154.23 levels.

GBP/JPY Technical Levels

Acceptance below 154.23 (23.6% of 162.60-151.64 + hourly 100-MA) would expose key support at 153.50 (Apr 12 low). On the other hand, a break above 155.15 (10-DMA) would shift risk in favor of a rise to 155.82 (38.2% of 162.60-151.64).