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)