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22 Apr 2016
GBP/JPY consolidating the downside after the big drop
Having plummeted more than 160 pips in the last US session, the GBP/JPY cross is seen consolidating the down as Tokyo traders hit their desks on the final trading of this week.
GBP/JPY set for second weekly rise in a row
The GBP/JPY pair now drops 0.07% to 156.66, testing Thursday’s low struck at 156.63. The cross faced severe double blow at the start of the American session yesterday after the oil prices turned negative and rattled investors’ confidence once again, sending the US equities lower along with the higher-yielding currencies such as the GBP.
While on the JPY-side of the equation, a sudden turnaround in the risk conditions lifted the safe-haven bids for the Japanese yen amid renewed sell-off in the oil and stock markets. Further, upbeat US jobless claims data gave the much-needed boost to the US dollar across the board, excluding versus yen, which weighed heavily on the EUR, GBP and Antipodeans.
Looking ahead, sentiment continues to remain poor amid extension of risk-off moods into Asia, with the Japanese stocks opening lower, which may keep the cross under pressure. Meanwhile, nothing of significance for the prices in the day ahead, except for the second-liner data in the form of flash manufacturing PMI reports from both Japan and the US.
GBP/JPY Levels to consider
The pair has an immediate resistance at 157 (round number) and from there to 157.74 (Apr 19 high). On the flip side, support is seen at 156 (psychological levels) below which it could extend losses to towards 155.61/48 (10-DMA/ 1h 200-SMA).
GBP/JPY set for second weekly rise in a row
The GBP/JPY pair now drops 0.07% to 156.66, testing Thursday’s low struck at 156.63. The cross faced severe double blow at the start of the American session yesterday after the oil prices turned negative and rattled investors’ confidence once again, sending the US equities lower along with the higher-yielding currencies such as the GBP.
While on the JPY-side of the equation, a sudden turnaround in the risk conditions lifted the safe-haven bids for the Japanese yen amid renewed sell-off in the oil and stock markets. Further, upbeat US jobless claims data gave the much-needed boost to the US dollar across the board, excluding versus yen, which weighed heavily on the EUR, GBP and Antipodeans.
Looking ahead, sentiment continues to remain poor amid extension of risk-off moods into Asia, with the Japanese stocks opening lower, which may keep the cross under pressure. Meanwhile, nothing of significance for the prices in the day ahead, except for the second-liner data in the form of flash manufacturing PMI reports from both Japan and the US.
GBP/JPY Levels to consider
The pair has an immediate resistance at 157 (round number) and from there to 157.74 (Apr 19 high). On the flip side, support is seen at 156 (psychological levels) below which it could extend losses to towards 155.61/48 (10-DMA/ 1h 200-SMA).