GBP/JPY Retraces to 153.00 Levels, Correction Underway
GBP/JPY is witnessing profit taking ahead of the weekend, courtesy of which the pair has recovered to 153.00 levels.
Too early to call a bottom
Brexit
referendum is still at least two months away. Plus, Yen bulls may not
have run out of steam given the Bank of Japan has remained remarkably
resilient to recent Yen strength. Furthermore, US rate hike bets are
falling fast.
Thus, it appears a bottom may not have reached and
a scope for further drop exists. However, short-term loss of momentum
may yield corrective rally. The immediate focus is on the UK data-
manufacturing production and trade balance figures.
GBP/JPY Technical Levels
The
cross clocked a high of 153.38 before trimming gains to trade around
152.85 levels. A breakdown of hourly chart support at 152.50 would open
doors for a re-test of 151.00-151.64 (previous day’s low). On the other
hand, a break above 153.38 (daily high) would expose 154.00-154.22
(23.6% of 162.58-151.64).
(Market News Provided by FXstreet)
