Friday, September 18, 2015

GBP/JPY trims losses, hovers around 186.50

FXStreet (Mumbai) - The cross in the GBP/JPY bounced-off a brief dip below 186 handle, although keeps losses in the European session, as the yen bulls dominates across the board on the back of rising risk-off sentiment.

GBP/JPY stuck around 186.50

Currently, the GBP/JPY pair trades -0.34% lower at 186.49, recovering from fresh session lows posted at 185.95. The GBP/JPY cross tries hard to regain 187 handle, but every attempt to the upside met supply near 186.70 on several occasions.

The cross remains pressure mainly driven by a strengthening yen versus the US dollar after the Fed decision reinforced worries over the health of the global economy, dampening investors’ sentiment and thus, increasing yen’s allure as a safe-haven.

However, the losses remain restricted as the pound trades firmer against the buck as the BOE now remains the only central bank to stick to rate-hike stance this year, while the Fed appears uncertain on the timing of the lift-off post FOMC.

GBP/JPY Technical Levels

To the upside, the next resistance is located at 187.35 (Today’s High) levels and above which it could extend gains to 188 levels. To the downside immediate support might be located at 185.95 (Today’s Low) below that at 185.32 (Aug 28 Low) levels.
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