Thursday, October 29, 2015

GBP/JPY hovers around 50% retracement

FXStreet (Mumbai) - The GBP/JPY pair is trading around its 50% retracement of the almost 800 point rally seen in the first half of the September located at 184.32.

Trades below 50-DMA

The cross currently trades below its 50-DMA located at 184.47 levels. Sterling ran into offers close to 185.00 handle in Asia as the increased probability of the Fed moving rates in December has reduced the bets of more Bank of Japan easing tomorrow.

Moreover, this is the third consecutive session when the pair is finding support at the 50% retracement located at 184.32 levels.

GBP/JPY Technical Levels

A failure to sustain above 184.32 could push the pair down to 183.90 (previous day’s low). A break below would open doors for a sell-off to 183.38 (61.8% of rally in September). On the higher side, a break above 184.47 (50-DMA) could see the cross re-test 10-DMA at 185.00.
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