The latest 6 February GBPJPY Technical Analysis reveals that the pair slid in Asia trading but has regained its footing. Right now, it is gasping for air at 152.10 ahead of European markets. Read on!
6 February, GKFX – GBP/JPY found a bounce in Tokyo trading, currently trading near 152.20 after the floor fell out from under the pair, reaching an Asia session low of 151.20 as traders pile into safe havens amidst a global risk rout that has seen the Nikkei Index suffer its biggest single-day loss in almost thirty years, shedding nearly 7% on the day.
Expectations for a May hike from BoE
Bullish traders will be hoping for hawkish wording to come from the BoE when they give their Rate Decision and Monetary Policy Summary on Thursday at 12:00 GMT. The Yen has little impactful data slated for this week, and the Japanese currency will continue to face the full brunt of risk-off markets, with constant jawboning from BoJ heads being the only thing keeping the currency from lifting into the stratosphere.
A bearish tone to European markets today could cast a pallor over GBP/JPY, sending the pair even lower as risk aversion dominants the broad markets with equities across the globe shaking out of their record highs in spectacular fashion.
6 February GBPJPY Technical Analysis
GBP/JPY has priced in intraday support/resistance at 151.25 and 152.60 respectively, while H4 charts show a breakdown of the recent bullish trend, with the recent risk-off market sentiment blowing out the bottom on GBP/JPY’s rising trendline. Daily charts are a little more sedate despite the recent bearish volatility and show price trading inside of the support zone between the 34 EMA at 153.05 and the 200-day SMA still far below at 137.34.
Today’s pivot points:
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