This 10 January GBPJPY Technical Outlook shows that the pair hit a two – week low after bearish doji reversal. What else does it reveal? Find out.
10 January, GKFX– GBP/JPY is fast losing altitude, now trading at a two-week low of 151.48, courtesy of the rising demand for the Japanese Yen.
- GBP/JPY hit a two – week low after bearish doji reversal.
- The slide could continue if equities turn risk-averse, UK data misses estimates.
Monday’s doji candle and a bearish follow-through indicate a short-term bearish trend reversal.
The Japanese Yen is gaining altitude across the board probably due to fears that rising yields may destabilize the equity markets. Also, BOJ’s routine QE operation (reduction in long-end bond purchases) is being read by many as a sign that the central bank is moving towards QE taper.
The pair could extend the slide to 50-day MA support of 150.58 if the European equities turn risk-averse and UK manufacturing and industrial production data print below estimates.
10 January GBPJPY Technical Outlook
A break below 151.19 (Dec. 26 low) would open up downside towards 150.58 (50-day MA) and 150.00 (psychological levels). On the higher side, breach of resistance at 151.76 (Jan. 3 low) would expose hurdle at 151.94 (Jan. 9 low) and 152.39 (10-day MA).
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