#GBPJPY @ 168.697 The pound’s reversal from 170.00 contained above 168.40. (Pivot Orderbook analysis)

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• The pound’s reversal from 170.00 contained above 168.40.
• The pair trims Monday’s gains as hopes of an aggressive BoE hike wane.
• Investors remain wary about a BoJ intervention.

The pair currently trades last at 168.697.

The previous day high was 170.1 while the previous day low was 166.05. The daily 38.2% Fib levels comes at 168.55, expected to provide support. Similarly, the daily 61.8% fib level is at 167.6, expected to provide support.

The British pound’s reversal from seven-year highs right above 170.00 seen on Monday found support above 168.40 on Tuesday, before stalling right ahead of 169.00 amid increasing rumors of a BoJ intervention.

The new British finance minister’s announcement of the reverse of most of the aspects of its predecessor’s tax cuts plan has generated concern that the Bank of England may not hike rates as aggressively as expected, which has sent the pound moderately lower on Tuesday.

The sterling has seen some positive price action during the European session, as the Financial Times suggested that the Bank of England was planning to delay the start of its quantitative tightening (QT) gilt sales from the scheduled date of Oct. 31, after the initial delay from Oct. 6.

The Bank, however, denied the report later on affirming that they do not contemplate any postponement of the start of government bonds’ sales, which sent the GBP lower again.

On the other end, Investors remain on the watch for the possibility of an intervention by the Bank of Japan to strengthen the JPY. The yen has actually exceeded the level that triggered an intervention by the BoJ last month, and the Japanese Government reiterated on Monday their commitment to a “firm response” to avoid rapid yen declines.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 168.82 at the time of writing. Pair opened at 169.26 and is trading with a change of -0.26 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 161.67, 50 SMA 162.47, 100 SMA @ 163.37 and 200 SMA @ 160.89.

The previous day high was 170.1 while the previous day low was 166.05. The daily 38.2% Fib levels comes at 168.55, expected to provide support. Similarly, the daily 61.8% fib level is at 167.6, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 166.84, 164.42, 162.8
• Pivot resistance is noted at 170.88, 172.51, 174.93

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