13 Jan 2014
GBP/JPY crashed below the support area of 171.00
FXstreet.com (Moscow) - The bearish sentiments dominate GBP/JPY trading this morning as the cross crashed below the support area of 171.00 and reached the current low at 170.30 influenced by wild USD/JPY movements.
GBP/JPY is in trouble
On Friday GBP/JPY lost its chance to close the first full trading week of the year in green. The cross fell sharply and closed far below the support of 172.00 (Friday close is at 171.34). First, British industrial production numbers were to blame, as they failed to live up to expectations. Then the US Payrolls made things even worse. So the picture is turned pretty bearish for the cross, especially now, as the support of 171.00 is broken. The UK macro calendar is barren today, so GBP/JPY will move in tandem with EUR/JPY and USD/JPY, influenced by post-NFP position adjustment and market sentiment. Traders are likely to be fixated on Dollar-related factors that have only knock-on effect on the cross. Keep an eye at 170.00, once it is broken, hardly anything will stop GBP/JPY from going down all the way to 169.00. To the upside, the cross needs to return above 171.00 to improve technical picture.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 171.95, with support below at 170.85, 170.15 and 169.05, with resistance above at 172.65, 173.75 and 174.45. Hourly Moving Averages are bearish, with the 200SMA at 172.50 and the daily 20EMA at 171.12. Hourly RSI is neutral at 20.48
GBP/JPY is in trouble
On Friday GBP/JPY lost its chance to close the first full trading week of the year in green. The cross fell sharply and closed far below the support of 172.00 (Friday close is at 171.34). First, British industrial production numbers were to blame, as they failed to live up to expectations. Then the US Payrolls made things even worse. So the picture is turned pretty bearish for the cross, especially now, as the support of 171.00 is broken. The UK macro calendar is barren today, so GBP/JPY will move in tandem with EUR/JPY and USD/JPY, influenced by post-NFP position adjustment and market sentiment. Traders are likely to be fixated on Dollar-related factors that have only knock-on effect on the cross. Keep an eye at 170.00, once it is broken, hardly anything will stop GBP/JPY from going down all the way to 169.00. To the upside, the cross needs to return above 171.00 to improve technical picture.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 171.95, with support below at 170.85, 170.15 and 169.05, with resistance above at 172.65, 173.75 and 174.45. Hourly Moving Averages are bearish, with the 200SMA at 172.50 and the daily 20EMA at 171.12. Hourly RSI is neutral at 20.48