Thursday, November 19, 2015

GBP/JPY treads water ahead of UK data

FXStreet (Mumbai) - The British pound tries hard to regain control over its Japanese counterpart ahead of Europe open, keeping GBP/JPY modestly flat below the mid-point of 188 handle.

GBP/JPY off lows, but faces resistance near 188.45

Currently, the GBP/JPY pair trades almost unchanged at 188.35, unable to extend below 118.45 region post-BOJ decision. The cross failed to hold on near fresh three-month tops reached at 188.81 and dropped sharply to hourly 20-SMA after the yen strengthened on the back of on-hold policy stance by the BOJ.

In last hours, the cross managed to recover losses as the GBP bulls jumped back into the bids against the greenback ahead of the UK retail sales data due later this session. The UK retail sales are expected to drop 0.1% m/m in Oct compared to 1.9% growth reported in Sept and rise 4.6% y/y following a 6.5% gain booked previously.

GBP/JPY Technical Levels

To the upside, the next resistance lies at 188.81 (Today’s High), above which it could extend gains to 189 (round number). To the downside, the cross finds immediate support at 187.82 (1h 50-SMA), below that 187.29 (Nov 18 Low), could act as a major support.
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