21 Mar 2014
GBP/JPY is paralyzed at the support of 169.00
FXStreet (Moscow) - GBP/JPY has frozen to the support zone of 169.00 in Asia. Bears drove the cross to the current lows of 168.86, but the fresh demand located below 169.00 triggered the upside rebound.
GBP/JPY is scheming the bullish breakout
GBP/JPY ended Thursday lower but still managed to close above the key level of 169.00. On daily charts the cross is stuck in a range, but weekly close above this level will heighten its chances to stage the bullish breakout. From the fundamental point of view UK labor market data published earlier this week raised the optimism among investors and sharpened the UK-Japan rate expectation differential. This is a long-term GBP-positive factor, while potential geopolitical tensions escalation and rush to safety ahead of the weekend is a short-term JPY-positive factor. Thus today we may see the cross weakening within its current range, but the dips are likely to be bought.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 169.00, with support below at 168.80, 168.50, and 168.30, with resistance above at 169.20, 169.60 and 170.00.
GBP/JPY is scheming the bullish breakout
GBP/JPY ended Thursday lower but still managed to close above the key level of 169.00. On daily charts the cross is stuck in a range, but weekly close above this level will heighten its chances to stage the bullish breakout. From the fundamental point of view UK labor market data published earlier this week raised the optimism among investors and sharpened the UK-Japan rate expectation differential. This is a long-term GBP-positive factor, while potential geopolitical tensions escalation and rush to safety ahead of the weekend is a short-term JPY-positive factor. Thus today we may see the cross weakening within its current range, but the dips are likely to be bought.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 169.00, with support below at 168.80, 168.50, and 168.30, with resistance above at 169.20, 169.60 and 170.00.