GBP/JPY: Modest Rebound After 700-Pip Decline

GBP/JPY: Modest Rebound After 700-Pip Decline

2 May 2016, 21:07
Roberto Jacobs
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GBP/JPY: Modest Rebound After 700-Pip Decline

The pound is up against the yen after falling more than 700 pips in the previous three trading days. GBP/JPY managed to erase losses on Monday and it is up for the first day after hitting earlier a 2-week low.

GBP/JPY bouncing from the lows

Price opened on Monday at 154.87, the lowest since April 18 and then bounced to the upside. It filled the bearish gap and then rose further. On European hours, it broke above 156.00 and peaked during the American session at 156.67. It pulled back afterwards and it was trading at 156.15/20, up 0.42% for the day.

It is the first daily gain after last week collapse. The decline pushed GBP/JPY to finish April in negative territory. It posted the lowest monthly close since August 2013.

GBP/JPY technical level

To the upside, resistance levels lie at 156.65/70 (daily high), 157.85 (Apr 20 high) and 158.40 (Mar 22 & 24 low). On the other direction, support levels might be seen at 155.35 (European session low / Apr 15 high), 154.45 (Apr 6 low / Apr 11 high) and 152.60 (Apr 8 low).


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