#GBPJPY @ 183.668 struggles to capitalize on the previous day’s post-BoJ rally to a seven-week high.
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- GBP/JPY struggles to capitalize on the previous day’s post-BoJ rally to a seven-week high.
The pair currently trades last at 183.668.
The previous day high was 184.33 while the previous day low was 181.28. The daily 38.2% Fib levels comes at 183.16, expected to provide support. Similarly, the daily 61.8% fib level is at 182.44, expected to provide support.
The GBP/JPY cross comes under some selling pressure on Wednesday and erodes a part of the previous day’s strong gains to the 184.30 area, or its highest level since September 13. Spot prices, however, manage to recover a few pips from the daily low and currently trade around the 183.80 region, down less than 0.30% for the day.
Traders opted to lighten their bearish bets around the Japanese Yen (JPY) in the wake of verbal intervention by authorities, which, in turn, is seen as a key factor weighing on the GBP/JPY cross. Japan’s top currency diplomat Masato Kanda said that the government was ready to respond to “one-sided, sharp” moves in currency markets. Adding to this, Japanese Chief Cabinet Secretary Hirokazu Matsuno noted that they won’t rule out any steps to respond to rapid, disorderly and undesirable FX moves.
That said, the Bank of Japan’s (BoJ) dovish pledge to continue with its extremely accommodative policy to support the domestic economy caps gains for the JPY and helps limit the downside for the GBP/JPY cross. The Japanese central bank announced minor changes to its yield curve control (YCC) policy on Tuesday, disappointing investors hoping for a more aggressive move towards ending years of monetary stimulus. The BoJ also indicated that a shift away from the ultra-dovish stance will take longer than initially expected.
The British Pound (GBP), on the other hand, is undermined by a modest US Dollar (USD) strength and speculations that the Bank of England (BoE) will leave the benchmark interest rate on hold for the second successive time to support the ailing economy. This fails to assist the GBP/JPY cross to capitalize on its modest intraday bounce from the vicinity of mid-183.00s. Traders also seem reluctant to place aggressive bets and prefer to wait on the sidelines ahead of the BoE monetary policy decision, scheduled to be announced on Thursday.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 183.78 at the time of writing. Pair opened at 184.3 and is trading with a change of -0.28 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 183.78 |
| 1 | Today Daily Change | -0.52 |
| 2 | Today Daily Change % | -0.28 |
| 3 | Today daily open | 184.30 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 182.27, 50 SMA 182.89, 100 SMA @ 182.64 and 200 SMA @ 174.25.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 182.27 |
| 1 | Daily SMA50 | 182.89 |
| 2 | Daily SMA100 | 182.64 |
| 3 | Daily SMA200 | 174.25 |
The previous day high was 184.33 while the previous day low was 181.28. The daily 38.2% Fib levels comes at 183.16, expected to provide support. Similarly, the daily 61.8% fib level is at 182.44, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 182.27, 180.25, 179.23
- Pivot resistance is noted at 185.32, 186.35, 188.37
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 184.33 |
| Previous Daily Low | 181.28 |
| Previous Weekly High | 183.75 |
| Previous Weekly Low | 181.04 |
| Previous Monthly High | 184.33 |
| Previous Monthly Low | 178.08 |
| Daily Fibonacci 38.2% | 183.16 |
| Daily Fibonacci 61.8% | 182.44 |
| Daily Pivot Point S1 | 182.27 |
| Daily Pivot Point S2 | 180.25 |
| Daily Pivot Point S3 | 179.23 |
| Daily Pivot Point R1 | 185.32 |
| Daily Pivot Point R2 | 186.35 |
| Daily Pivot Point R3 | 188.37 |
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