6 May 2016
GBP/JPY confirms a break below 155.00 handle
The bears regained control over the GBP/JPY pair as the pair once again drops back below 155.00 handle and weekly lows support, to print a fresh two week low level of 153.86. The pair, however, has recovered from lows and is currently trading back near 154.50 level.
The pair's weakness below weekly lows was led by disappointing US job numbers that reported addition of fewer-than-expected 160,000 new jobs in April.
After repeatedly flirting with 155.00 handle, the pair finally seems to have broken through the important support and hence remains vulnerable to further downside in the near-term.
Technical levels to watch
From current levels, the pair seems to extend its fall towards 153.55-50 intermediate support before heading towards testing April daily closing low level support near 152.00 round figure mark.
On the flip side, move back above 155.00 important support turned resistance, might now confront resistance near 155.50-60 area. Even if the pair manages to clear 155.50-60 resistance, any further upward momentum now seems to be capped at a very strong resistance near 156.00 round figure mark.
The pair's weakness below weekly lows was led by disappointing US job numbers that reported addition of fewer-than-expected 160,000 new jobs in April.
After repeatedly flirting with 155.00 handle, the pair finally seems to have broken through the important support and hence remains vulnerable to further downside in the near-term.
Technical levels to watch
From current levels, the pair seems to extend its fall towards 153.55-50 intermediate support before heading towards testing April daily closing low level support near 152.00 round figure mark.
On the flip side, move back above 155.00 important support turned resistance, might now confront resistance near 155.50-60 area. Even if the pair manages to clear 155.50-60 resistance, any further upward momentum now seems to be capped at a very strong resistance near 156.00 round figure mark.