GBP/JPY moves back above 136.00 mark, closer to session tops ahead of UK budget

GBP/JPY rallies around 250 pips from the post-BoE low to 134.00 round-figure mark.
Receding demand for safe-haven assets weighed on the JPY and remained supportive.

Haresh Menghani FXStreet

The GBP/JPY cross quickly reversed an early European session fall and is currently placed near the top end of its daily trading range, around the 136.40-50 region.

The cross witnessed a dramatic intraday turnaround on Wednesday and has rallied around 250 pips from the vicinity of the 134.00 round-figure mark, or session lows touched in a knee-jerk reaction to the Bank of England's surprise move to cut rates by 50 bps.

The UK central bank also launched a lending scheme worth £100 to small and medium-sized businesses. This comes at the time when the UK government is expected to significantly increase its expenditure to support the economy and provided a goodish lift to the sterling.

The latest developments helped offset disappointing UK macro data, which showed that the economy remained flat in January as compared to a modest 0.1% growth anticipated. Separately, the UK industrial production data also fell short of expectations, albeit did little to impress bearish traders.

Apart from domestic factors, a modest recovery in the equity markets undermined the Japanese yen's perceived safe-haven demand and further collaborated to the pair's intraday upsurge. Bulls took some breather ahead of the weekly tops and look forward to the UK annual budget for a fresh impetus.

Technical levels to watch

GBP/JPY

Overview
Today last price	136.43
Today Daily Change	0.04
Today Daily Change %	0.03
Today daily open	136.39

Trends
Daily SMA20	140.8
Daily SMA50	141.96
Daily SMA100	141.7
Daily SMA200	137.69

Levels
Previous Daily High	137.22
Previous Daily Low	133.71
Previous Weekly High	139.19
Previous Weekly Low	136.44
Previous Monthly High	144.96
Previous Monthly Low	137.53
Daily Fibonacci 38.2%	135.88
Daily Fibonacci 61.8%	135.05
Daily Pivot Point S1	134.33
Daily Pivot Point S2	132.27
Daily Pivot Point S3	130.83
Daily Pivot Point R1	137.84
Daily Pivot Point R2	139.28
Daily Pivot Point R3	141.34

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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