GBP/JPY Reclaims 162.00 Mark Ahead of UK GDP Release
Recovering from early dip below 162.00 mark, the GBP/JPY pair has spiked over 60-pips to currently trade near 162.50 level ahead of UK GDP release for the first quarter of 2016.
The quarterly release of UK GDP is expected to show economy growing at 0.4% q/q, at a slightly slower pace as compared to 0.6% q/q growth registered in the last quarter of 2015. Today's UK GDP data and Thursday's BoJ monetary policy meeting outcome would be the key driver in determining the near-term direction for the pair.
Technical levels to watch
A sustained move above 162.50 level seems to set the stage for an immediate up-move beyond 163.00 handle towards testing March high resistance near 164.00 round figure mark. Further, a clear break-through March highs would now open room for continuation of the pair's near-term appreciating move, possibly towards its next major resistance near 166.00 handle.
Alternatively, reversal from current resistance area and a subsequent drop below day's low support near 161.80 level, the pair seems more likely to break below 161.00 mark intermediate support to retest 160.00 psychological mark support.