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GBP/JPY dropping back within negative territory

FXStreet (Guatemala) - GBP/JPY is trading at 181.61, down -0.18% on the day, having posted a daily high at 182.00 and low at 181.35.

GBP/JPY has dropped away from the 182 handle in a move which was isolated and is trying to recover at a key support area here. The pair has been trading in negative territory since last weeks break below 182.20 and brings in risk towards the psychological 180.00 level. Beyond this point, 177.70 could be a key supporting area before a strong 170 handle. Fundamentally, there are a number of Japanese releases but the theme remains with a dovish BoJ. We will also have the BoE’s inflation report that is likely to signal that there will be no rate rise until August 2015 according to analysts at RBS.

GBP/JPY noteworthy short-term levels

Current price is 181.61, with resistance ahead at 181.74 (Daily Open), 181.98 (Weekly Classic PP), and 182.01 (Hourly 20 EMA). Next support to the downside can be found at 181.35 (Daily Low), 181.14 (Daily Classic S1), 180.34 (Daily Classic S2) and 179.62 (Weekly Classic S1).

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