20 Mar 2015
GBP/JPY threatens to fall below 178.00
FXStreet (Mumbai) - The GBP/JPY pair reversed course to trade lower at 178.05 levels. The GBP is witnessing a fresh wave of selling ahead of the European session.
Weak UK Gilt yields could lead to further losses
The pair could drop below 178.00 levels, if the UK Gilt yields extend slide witnessed in the previous session. The yields had come under pressure on Thursday after the Bank of England economist indicated the possibility of an interest rate cut in order to battle deflationary forces. Meanwhile, potential losses in the European equity markets could also help strengthen the Yen.
GBP/JPY Technical Levels
The immediate resistance is seen at 178.42, above which gains could be extended to 178.84 levels. On the flip side, a break below 178.00 could send the pair down to 177.13 levels.
Weak UK Gilt yields could lead to further losses
The pair could drop below 178.00 levels, if the UK Gilt yields extend slide witnessed in the previous session. The yields had come under pressure on Thursday after the Bank of England economist indicated the possibility of an interest rate cut in order to battle deflationary forces. Meanwhile, potential losses in the European equity markets could also help strengthen the Yen.
GBP/JPY Technical Levels
The immediate resistance is seen at 178.42, above which gains could be extended to 178.84 levels. On the flip side, a break below 178.00 could send the pair down to 177.13 levels.