Wednesday, November 11, 2015

GBP/JPY off highs, but still positive

FXStreet (Mumbai) - The disappointing UK wage growth data saw the GBP/JPY trim gains from its daily highs, but a drop in the jobless rate ensured the pair stayed well into a positive territory.

Hovers around key fib level

The cross now trades around 186.29, which is the 38.2% retracement of the drop from 195.88 to 180.36. A slower-than-expected rise in the wage growth hurt Sterling, however, unemployment dipping further to 5.3% in three months to September kept the losses restricted.

Ahead in the day, the overall demand for Sterling is likely to guide the GBP/JPY cross. The other side of the story – JPY is likely to be non-existent today given the US markets are closed today with no major data due for release.

GBP/JPY Technical Levels

The pair could make another run at the daily high of 186.75, above which the gains could be extended to 187.69 (Nov 5 high). A break above would expose 100-DMA at 188.00. On the other hand, a failure to sustain above 186.29 (38.25 of 195.88-180.36) could push the pair lower to 185.95 (200-DMA).
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