GBP/JPY retraces 61.8% of flash crash

GBP/JPY cross has retraced more than 61.8% of the flash crash seen in early Asia. The 61.8% fibo level stands at 128.78, while at the time of writing the cross was trading just above 129.00 levels.

Eyes UK data

The immediate focus is on UK data which is likely to show manufacturing production rose 0.4% m/m in August compared to last month’s figure of -0.9%. Meanwhile, trade balance numbers are expected to show the deficit stay pretty much unchanged on themonth.

Later in the day, US wage growth numbers and non-farm payrolls figure could influence the pair.

GBP/JPY Technical Levels

A break below 128.78 (61.8% of flash crash) could yield a fall back to 128.05 (hourly chart support). On the higher side, 129.72 (76.4% of flash crash) could offer resistance, which if breach would expose hourly 10-MA of 129.92.