GBP/JPY spikes on Japan stimulus news

Yen is being heavily offered across the board on news Japan is likely to announce a JPY 27 trillion stimulus later today. GBP/JPY cross jumped to hourly 200-MA of 139.64 levels.

Two-figure rise

The cross is up full two figures from its opening rate of 137.31 levels. Right from the start of the trading in Asia, the Yen has been on the back foot. Initially what appeared to be a technical correction quickly turned into a Yen selling frenzy after reports hits the wires that PM Abe is due to announce a JPY 27 trillion stimulus today.

In the meantime, Cable traded muted in early Asia and continued to do so at the time of writing. Consequently, the cross jumped full two figures.

GBP/JPY Technical Levels

 Acceptance above hourly 200-MA level of 139.64 could yield a break above 140.0, in which case the bullish move could be extended to 142.08 (23.6% of 163.895-128.602). On the other hand,  break below 139.07 (hourly 100-MA) would expose 138.22 (hourly 50-MA)- 138.00 level.