25 Mar 2014
GBP/JPY is back to the drawing board deeply below 169.00
FXStreet (Moscow) - GBP/JPY has stuck in a tight range after touching the current high at 168.74
GBP/JPY risks are skewed to the downside
GBP/JPY tried to recover to the resistance zone of 169.40 but finished the first trading day of this week deeply below 169.00, close to its opening level at 169.58. The volatility of the cross is easily explained as it is very sensitive to risk sentiments and geopolitical developments. News on sanctions and counter-sanctions related to Russia-Ukraine conflict are likely to support JPY across the board, This will increase the downside pressure on GBP/JPY. From the fundamental point of view, UK CPI data is in focus today. It may provide further direction for GBP and it is not going to be positive as the market expect the inflation continued to decelerate in February. Watch out for the support level of 168.40. Once it is broken, 168.25 and 168.00 will come into sight. On the upper side the resistance is seen at 168.76 (1h 50EMA) and at 169.00.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 168.76, with support below at 168.07, 167.45, and 166.76, with resistance above at 169.37, 170.07 and 170.68. Hourly Moving Averages are mostly bearish, with the 200SMA at 169.44 and the daily 20EMA at 169.69. Hourly RSI is neutral at 48.
GBP/JPY risks are skewed to the downside
GBP/JPY tried to recover to the resistance zone of 169.40 but finished the first trading day of this week deeply below 169.00, close to its opening level at 169.58. The volatility of the cross is easily explained as it is very sensitive to risk sentiments and geopolitical developments. News on sanctions and counter-sanctions related to Russia-Ukraine conflict are likely to support JPY across the board, This will increase the downside pressure on GBP/JPY. From the fundamental point of view, UK CPI data is in focus today. It may provide further direction for GBP and it is not going to be positive as the market expect the inflation continued to decelerate in February. Watch out for the support level of 168.40. Once it is broken, 168.25 and 168.00 will come into sight. On the upper side the resistance is seen at 168.76 (1h 50EMA) and at 169.00.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 168.76, with support below at 168.07, 167.45, and 166.76, with resistance above at 169.37, 170.07 and 170.68. Hourly Moving Averages are mostly bearish, with the 200SMA at 169.44 and the daily 20EMA at 169.69. Hourly RSI is neutral at 48.