GBP/JPY consolidates around 185.50 as the Yen loses steam

Guillermo Alcala FXStreet

Sterling's rebound from 185.00 is capped at 185.60.
Dovish BoJ rhetoric hurt the Yen.
The broader bearish trend remains intact.

The pound has nudged higher against a weaker Japanese Yen, weighed by the dovish comments by the BoJ deputy governor and a moderate uptick on US Treasury yields.

BoJ dep gov Himino cooled hopes of momentary policy normalisation in the next months, suggesting that interest rates will remain negative until sustained stable 2% inflation is achieved.

Beyond that, the moderate pick up on US Treasury yields has added pressure on the Yen, which is the most sensitive currency to yield differentials with US bonds.

The hourly chart shows hesitation above 185.00, resulting in a falling triangle pattern. This figure has a bearish bias with next support levels below 185.00, at 18470 and 182.73. Resistances are 185.80 and 186.15.

Technical levels to watch

GBP/JPY

Overview
Today last price	185.36
Today Daily Change	-0.02
Today Daily Change %	-0.01
Today daily open	185.38

Trends
Daily SMA20	186.64
Daily SMA50	184.15
Daily SMA100	183.71
Daily SMA200	177.42

Levels
Previous Daily High	186.19
Previous Daily Low	185.07
Previous Weekly High	188.53
Previous Weekly Low	186.2
Previous Monthly High	188.67
Previous Monthly Low	182.75
Daily Fibonacci 38.2%	185.5
Daily Fibonacci 61.8%	185.76
Daily Pivot Point S1	184.9
Daily Pivot Point S2	184.42
Daily Pivot Point S3	183.78
Daily Pivot Point R1	186.03
Daily Pivot Point R2	186.67
Daily Pivot Point R3	187.15

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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