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22 Jun 2015
GBP/JPY not yet strong enough to break 196.00
FXStreet (Córdoba) - GBP/JPY is consolidating near multi-year highs as it remains moving sideways on the short-term but holding a bullish tone on a wider perspective.
Last Thursday the pair climbed to 195.82 hitting the highest level since September 2008, but then turned to the downside. Today the pair approached 2015 highs and peaked at 195.55 but again, lost strength and pulled back.
Support between 194.30 and 194.50
The decline from today’s highs found support slightly above 194.50, just like it happened on Friday. The area between 194.30 (June 18 low) and 194.50 is a key short term support. A break below is likely to open the doors for a bearish correction.
On the opposite direction, the 196.00 handle has become a barrier with the pound not strong enough to break it. Today USD/JPY rose in the market losing the intraday bearish bias, but GBP/JPY failed to rally as the pound weakened in the market.
Last Thursday the pair climbed to 195.82 hitting the highest level since September 2008, but then turned to the downside. Today the pair approached 2015 highs and peaked at 195.55 but again, lost strength and pulled back.
Support between 194.30 and 194.50
The decline from today’s highs found support slightly above 194.50, just like it happened on Friday. The area between 194.30 (June 18 low) and 194.50 is a key short term support. A break below is likely to open the doors for a bearish correction.
On the opposite direction, the 196.00 handle has become a barrier with the pound not strong enough to break it. Today USD/JPY rose in the market losing the intraday bearish bias, but GBP/JPY failed to rally as the pound weakened in the market.