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6 Aug 2015
GBP/JPY struggles to sustain above 195.00
FXStreet (Mumbai) - The bid tone on the GBP/JPY has weakened somewhat, triggering a struggle to hold above 195.00 handle.
GBP lacks support of gilt yields
The yields on the long duration and short duration gilt yields are hovering flat to negative ahead of the BOE events. The 2-year yield fell, which mimics rate hike expectations, one basis points before recovering back to trade flat. The flat action despite widespread expectations of a hawkish shift in the BOE policy has restricted gains in the GBP.
GBP/JPY Technical Levels
The cross now hovers around 195.00. The immediate resistance is seen at 195.22 (previous session’s high), followed by a major hurdle at 195.88 (June 24 high). On the other hand, support is seen at 194.37 (July 17 high) and 193.73 (5-DMA).
GBP lacks support of gilt yields
The yields on the long duration and short duration gilt yields are hovering flat to negative ahead of the BOE events. The 2-year yield fell, which mimics rate hike expectations, one basis points before recovering back to trade flat. The flat action despite widespread expectations of a hawkish shift in the BOE policy has restricted gains in the GBP.
GBP/JPY Technical Levels
The cross now hovers around 195.00. The immediate resistance is seen at 195.22 (previous session’s high), followed by a major hurdle at 195.88 (June 24 high). On the other hand, support is seen at 194.37 (July 17 high) and 193.73 (5-DMA).