GBP/JPY Consolidating Below 157.00 Level ahead of BOE Announcement
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.