Wednesday, September 16, 2015

GBP/JPY nears 200-DMA after UK data

FXStreet (Mumbai) - The GBP/JPY pair strengthened to trade closer to its 200-DMA located at 185.41 after the data in the UK showed wage growth rose to six-year high in three months to July.

Revisits 50% retracement level

The cross bounced from its 10-DMA to trade at 185.38 (50% retracement of Apr-June rally). Sterling was buoyed by the official data, which showed The average weekly earnings excluding bonus rose at an annualised rate of 2.9% in three months to July, its biggest gains since early 2009. The positive surprise also came through from the drop in the unemployment rate.

Ahead in the day, the Sterling cross could remain on a positive footing. However, a negative action on the Wall Street may affect JPY and hurt GBP/JPY pair.

GBP/JPY Technical Levels

The pair currently trades around 185.30. The immediate resistance is seen at 185.41 (200-DMA), above which gains could be extended to 186.10 (previous day’s high). On the other side, support is seen at 184.31 (10-DMA) and 183.22 (Aug 24 low).
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