GBP/JPY Consolidating Below 157.00 Level ahead of BOE Announcement
GBP/JPY Consolidating Below 157.00 Level ahead of BOE Announcement
The GBP/JPY
pair is consolidating its Wednesday's reversal from 158.00 handle and
is currently trading below 157.00 level ahead of the BOE announcements.
The pair's near-term recovery from sub-154.00 level stalled on Wednesday
at 158.00 handle on softer-than-expected UK manufacturing and
industrial production data. The pair, however, held and bounced-off
156.00 level on broad JPY weakness. A dovish BOE coupled with the
ongoing concerns over the 'Brexit' and disappointing UK economic data
would force traders to unwind their GBP bullish bets, thus keeping the
GBP/JPY capped in the near-term.
The pair is currently hovering below 157.00 level and on short-term
chart (H1) seems to face strong resistance near 157.30-35 horizontal
zone. In order to increase the prospects of further recovery, the pair
needs to decisively break through this immediate resistance.
Technical levels to watch
Above 157.30-35 resistance, the pair seems to immediately aim towards
conquering 158.00 handle resistance and head towards 50-day SMA
resistance near 158.40-50 region.
Alternatively, sustained weakness below 156.50 level is likely to
accelerate the fall immediately to sub-156.00 level (155.85-80 support),
which if broken might again force the pair to retest the mid-point of
155.00-154.00 levels.
