#GBPJPY @ 157.361 nosedives 200 pips or 1.30% on Thursday, courtesy of a BoE rate hike. (Pivot Orderbook analysis)

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• GBP/JPY nosedives 200 pips or 1.30% on Thursday, courtesy of a BoE rate hike.
• GBP/JPY Price Analysis: Downward biased, but it could print a leg-up before the downtrend continues.

The pair currently trades last at 157.361.

The previous day high was 160.67 while the previous day low was 158.92. The daily 38.2% Fib levels comes at 159.59, expected to provide resistance. Similarly, the daily 61.8% fib level is at 160.0, expected to provide resistance.

With the Bank of England (BoE) hiking rates by 50 basis points, the GBP/JPY surprisingly plummets across the board, more than 200 pips on Thursday. At the time of writing, the GBP/JPY exchanges hands at 157.39 after hitting a daily high of 159.60.

The Pound Sterling (GBP) is losing traction against most G8 currencies. In the case of the GBP/JPY pair, price action dived sharply, towards new weekly lows, after smashing February’s 1 low of 158.90. That accelerated Sterling’s fall, extending below a one-month-old downslope trendline broken on January 20, that was acting as support and capped Wednesday’s drop.

On its way south, the GBP/JPY fell below the 158.00 figure, with bears eyeing to test the January 13 daily low at 155.64, followed by the YTD low at 155.35. But firstly, GBP/JPY bears would need to deal with the January 18 low of 157.27, ahead of the 157.00 figure, and followed by the January 17 low of 156.38.

On the other hand, the GBP/JPY reclaiming 158.00 could pave the way for a leg-up before resuming the downtrend. The GBP/JPY key resistance levels would be a downslope trendline at around 158.20-30, followed by the February 1 daily low of 158.90.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 157.4 at the time of writing. Pair opened at 159.42 and is trading with a change of -1.27 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 159.73, 50 SMA 162.29, 100 SMA @ 163.67 and 200 SMA @ 163.36.

The previous day high was 160.67 while the previous day low was 158.92. The daily 38.2% Fib levels comes at 159.59, expected to provide resistance. Similarly, the daily 61.8% fib level is at 160.0, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 158.66, 157.91, 156.91
• Pivot resistance is noted at 160.42, 161.43, 162.18

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