8 Jul 2014
GBP/JPY bears continue the assault; 174.25 is the target
FXStreet (Moscow) - GBP/JPY is consolidating Monday’s losses in a narrow range with light bearish pressure.
GBP/JPY bulls lose heart
It seems that GBP/JPY has formed a top after a steep rise during the previous week and now some healthy downside correction is in store for us. Though better than expected UK Industrial Production numbers published later today may trigger a new wave of BOE tightening speculations and lend support to the British currency across the board. In this case the cross might recover to 175.00 resistance where the short-term upside is likely to be capped. On the downside, watch 174.25 level (Asian low), once it is broken, the pivotal 174.00 will come into sight.
What price levels and patterns have to be considered?
Spot is presently trading at 174.42, and next resistance can be seen at 174.47 (Daily Open), 174.56 (Hourly 20 EMA), 174.58 (Daily High), 174.68 (Daily Classic PP) and 174.77 (Hourly 100 SMA).
To the downside we see next support at 174.30 (Weekly Classic PP), 174.28 (Yesterday's Low), 174.27 (Daily Low), 174.11 (Weekly Low) and 174.07 (Daily Classic S1).
Regarding candlestick formations, we can see Hammer formation on the 4-hour .
GBP/JPY bulls lose heart
It seems that GBP/JPY has formed a top after a steep rise during the previous week and now some healthy downside correction is in store for us. Though better than expected UK Industrial Production numbers published later today may trigger a new wave of BOE tightening speculations and lend support to the British currency across the board. In this case the cross might recover to 175.00 resistance where the short-term upside is likely to be capped. On the downside, watch 174.25 level (Asian low), once it is broken, the pivotal 174.00 will come into sight.
What price levels and patterns have to be considered?
Spot is presently trading at 174.42, and next resistance can be seen at 174.47 (Daily Open), 174.56 (Hourly 20 EMA), 174.58 (Daily High), 174.68 (Daily Classic PP) and 174.77 (Hourly 100 SMA).
To the downside we see next support at 174.30 (Weekly Classic PP), 174.28 (Yesterday's Low), 174.27 (Daily Low), 174.11 (Weekly Low) and 174.07 (Daily Classic S1).
Regarding candlestick formations, we can see Hammer formation on the 4-hour .