GBP/JPY drops below 160.00 to the lowest since September; down more than 700 pips


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  • GBP/JPY loses more than 4%, on worst day in months. 
  • Next medium-term support at 158.00. 
  • Japanse Yen soars across the board after the Bank of Japan’s decision.

The GBP/JPY cross is losing more than 700 pips on Tuesday amid a rally of the Japanese Yen following the Bank of Japan’s monetary policy announcement. 
The decision of the Bank of Japan to raise the upper range of its yield curve control of the 10-year bond from 0.25% to 0.50% boosted the Japanese Yen, that is having one of the most significant gains in years. The announcement took markets by surprise, leading to a selloff in government bonds

“Governor Kuroda stressed that the move did not represent tightening and that it was made to improve market functioning. While the policy rate was kept at -0.10%, speculation will grow for an eventual rate hike next year. We thought it was an H2 prospect but today’s move suggests it could happen as early as H1. Furthermore, given Governor Kuroda’s propensity for surprises, this hike could come under his watch rather than his successor’s”, explained analysts at Brown Brothers Harriman. 

The Yen is rising by more than 4% against its main rivals on Tuesday. The GBP/JPY cross is down by more than 700 pips, on its way to the lowest daily close since September 29. 

Recently the cross bottomed at 159.06 and it is hovering around 159.40. Before BoJ’s decision, it was trading at 166.70. On the downside, the next strong support area is seen around 158.00. 

Technical levels 

GBP/JPY

Overview
Today last price 159.16
Today Daily Change -7.22
Today Daily Change % -4.34
Today daily open 166.38
 
Trends
Daily SMA20 167.03
Daily SMA50 167.15
Daily SMA100 164.68
Daily SMA200 163.67
 
Levels
Previous Daily High 166.91
Previous Daily Low 165.16
Previous Weekly High 169.28
Previous Weekly Low 165.99
Previous Monthly High 170.95
Previous Monthly Low 163.06
Daily Fibonacci 38.2% 166.24
Daily Fibonacci 61.8% 165.83
Daily Pivot Point S1 165.39
Daily Pivot Point S2 164.4
Daily Pivot Point S3 163.65
Daily Pivot Point R1 167.14
Daily Pivot Point R2 167.9
Daily Pivot Point R3 168.89

 

 

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