GBP/JPY remains heavy near 160.00 amid BOJ-led resurgent JPY demand

GBP/JPY is off the multi-day lows but not out of the woods yet.
The yen leaps on persistent BOJ bond-buying, Japanese fiscal year-end flows.
The pound bears the brunt of cautious BOE against the Fed’s hawkishness.

Dhwani Mehta FXStreet

GBP/JPY is reversing a sharp fall below 160.00, as bears take a breather before the next push lower.

The buying interest around the Japanese yen remains unabated, which is likely to keep any upside attempts in the cross short-lived.

The yen gathered sudden strength over the last hour and triggered a huge sell-off in the USD/JPY pair, throwing the yen crosses under the bus.

The Bank of Japan's (BOJ) persistent efforts to defend the yield target at 0.25%, as it continues to buy Japanese Government Bond (JGBs) for the third consecutive day, are finally offering the much-needed support to JPY bulls.

The Japanese central bank has pledged to increase its offers to buy bonds after announcing that they offer to buy 600B yen in 3-5 yr JGBs and 725B yen in 5-10 yr JGBs, earlier on.

On the other side, the bearish sentiment around the pound also adds to the pain in the GBP/JPY cross. The BOE is likely to refrain from raising rates in its May meeting, as risks to the UK economic growth increase amid soaring inflation and the Ukraine uncertainty.

In his speech on Monday, BOE Governor Andrew Bailey sounded cautious, as he said that the situation was very volatile when asked about the May rate hike decision.

Looking ahead, the repatriation flows in the yen combined with the BOJ’s intervention will be closely eyed alongside the US ADP employment data. Further, the price action in the US Treasury yields and Ukraine updates could also have a significant impact on the pair.

GBP/JPY technical levels to watch

GBP/JPY

Overview
Today last price	160.25
Today Daily Change	-0.61
Today Daily Change %	-0.38
Today daily open	160.95

Trends
Daily SMA20	156.04
Daily SMA50	155.67
Daily SMA100	154.48
Daily SMA200	153.58

Levels
Previous Daily High	162.72
Previous Daily Low	160.26
Previous Weekly High	161.5
Previous Weekly Low	156.38
Previous Monthly High	158.07
Previous Monthly Low	153.37
Daily Fibonacci 38.2%	161.2
Daily Fibonacci 61.8%	161.78
Daily Pivot Point S1	159.9
Daily Pivot Point S2	158.85
Daily Pivot Point S3	157.44
Daily Pivot Point R1	162.36
Daily Pivot Point R2	163.77
Daily Pivot Point R3	164.82

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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