Shares 134 Views

GBP/JPY: bearish consolidation around 200-DMA

The GBP/JPY pair ran through fresh offers near session peak near 140.75 area and dropped to 140.00 neighborhood, the lowest level since Jan. 18.

The pair, however, has managed to bounce off few pips from session lows and is currently trading at 140.40-45 band, around the very important 200-day SMA. A fresh wave of risk-off mood negated the disappointing release of yearly earnings data from Japan.  

Moreover, persistent selling pressure around the British Pound, against the backdrop of perceived dovish statement from BoE on Thursday and disappointing reading on the UK services sector out on Friday, also collaborated towards restricting any swift recovery. 

With an empty UK economic docket, the cross remains at the mercy of broader market risk-sentiment that would derive the Japanese Yen’s safe-haven demand and provide some impetus for short-term traders. 

Technical levels to watch

A follow through selling pressure below 140.00 psychological mark would confirm a break-down and turn the pair vulnerable to head back towards 139.00 round figure mark with some intermediate support near 139.65-60 region. 

On the upside, recovery momentum above session peak resistance near 140.75 level, leading to a subsequent strength above 141.00 level, is likely to get extended towards 141.35 resistance, en-route 142.00 handle.

You may be interested

shares13 views

Opinion | What is a Security Token Offering (STO) and Why You Need an Advisor

Brian Evans - Oct 08, 2018

About the Author: Jaron Lukasiewicz is the CEO and founder of Influential Capital. Jaron has been an executive in the industry since 2012, previously serving as CEO of Coinsetter, one…

shares18 views

World Economic Forum: Blockchains improve Global Economy

Brian Evans - Oct 08, 2018

Beginning as a technology for financial ledgers only, blockchains have grown to become the corporate hype word around the globe. It’s touted as the invention that will…

shares24 views

‘Rehypothecation’: More about the Wall Street Practice that Could Ruin Bitcoin

Brian Evans - Oct 08, 2018

Note: This is part 4 in a multi-part article series exploring rehypothecation and commingling in bitcoin and other cryptocurrency markets. Part 1 and part 2 are interviews…

Most from this category

%d bloggers like this: