Wednesday, October 7, 2015

GBP/JPY: Getting ready for a stronger recovery?

FXStreet (Córdoba) - GBP/JPY is rising today boosted by the rally of the pound against the US dollar. The pair is testing yesterday’s highs located around 183.20 as it attempts to move off a key support zone.

GBP/JPY: 180.00 holds the key

During September the pair bottomed at 180.30/35 and last week, the decline from 188.25 (Sep high) was capped above 180.50. When price approached the 180.00 area, the pound gained strength. A break lower could trigger another bearish run.

But currently the pair is attempting to move of the lows. Today is rising of the fourth day in a row, currently trading around 183.00. If it manages to hold above 183.00 it could gain support for further gains. The next key resistance could be 184.10/20, where the daily 20-SMA stands.

The next days could be volatile for the pair considering that the Bank of Japan (Wednesday) and the Bank of England (Thursday) will announce its decisions on monetary policy.
For more information, read our latest forex news.

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