30 Jan 2015
GBP/JPY falls to 200-DMA
FXStreet (Mumbai) - The GBP/JPY pair fell to a 200-DMA level located at 177.32 as the weak UK gilt yields continue to weigh over Pound, while the Japanese Yen remains supported by weak Treasury yields in the US.
10-year UK Gilt near record lows
The 10-year Gilt yield in the UK continues to trade near the record low of 1.396% seen yesterday. The concerns of low inflation and delayed rate hike in the UK weigh over the Gilt yields. Consequently, the GBP/USD pair trades lackluster around 1.5068 levels.
On the other hand, the USD/JPY pair fell to 117.70 levels due to weakness in the US Treasury yields and the decline in the US equity index futures. Thus, the GBP/JPY cross fell to 200-DMA.
GBP/JPY Technical Levels
The pair has recovered slightly to 177.41. The immediate support is seen at 177.32 (200-DMA), under which losses could be extended to 176.85 (Jan. 14 low). On the flip side, the resistance is seen at 177.68 and 177.08 levels.
10-year UK Gilt near record lows
The 10-year Gilt yield in the UK continues to trade near the record low of 1.396% seen yesterday. The concerns of low inflation and delayed rate hike in the UK weigh over the Gilt yields. Consequently, the GBP/USD pair trades lackluster around 1.5068 levels.
On the other hand, the USD/JPY pair fell to 117.70 levels due to weakness in the US Treasury yields and the decline in the US equity index futures. Thus, the GBP/JPY cross fell to 200-DMA.
GBP/JPY Technical Levels
The pair has recovered slightly to 177.41. The immediate support is seen at 177.32 (200-DMA), under which losses could be extended to 176.85 (Jan. 14 low). On the flip side, the resistance is seen at 177.68 and 177.08 levels.