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6 Aug 2015
GBP/JPY rises above 195.00 ahead of BOE events
FXStreet (Mumbai) - The bid tone on the GBP strengthened in the early European session, taking the GBP/JPY to a session high of 195.10 ahead of the BOE events - rate decision, minutes, quarterly inflation report and Carney’s press conference.
Hawkish expectations
Sterling rose across the board on Wednesday, helping the GBP/JPY clock a high of 195.22, before paring gains to end the NY session at 194.67. The cross is back above 195.00 today as markets believe Carney is likely to announce major shift in the monetary policy; mostly tilting on the hawkish side.
Meanwhile, the Japanese Yen could take another hit today in case the US weekly jobless claims rise less-than-expected, thereby pushing the treasury yields higher and adding to the bullish momentum in the GBP/JPY pair.
GBP/JPY Technical Levels
The spot currently trades around 195.10. The immediate resistance is seen at 195.22 (previous session’s high), followed by a major hurdle at 195.88 (June 24 high). On the other hand, support is seen at 194.37 (July 17 high) and 193.73 (5-DMA).
Hawkish expectations
Sterling rose across the board on Wednesday, helping the GBP/JPY clock a high of 195.22, before paring gains to end the NY session at 194.67. The cross is back above 195.00 today as markets believe Carney is likely to announce major shift in the monetary policy; mostly tilting on the hawkish side.
Meanwhile, the Japanese Yen could take another hit today in case the US weekly jobless claims rise less-than-expected, thereby pushing the treasury yields higher and adding to the bullish momentum in the GBP/JPY pair.
GBP/JPY Technical Levels
The spot currently trades around 195.10. The immediate resistance is seen at 195.22 (previous session’s high), followed by a major hurdle at 195.88 (June 24 high). On the other hand, support is seen at 194.37 (July 17 high) and 193.73 (5-DMA).