GBP/JPY drops to session low

FXStreet (Mumbai) - The Pound is being hammered in crosses as well, as the GBP/JPY pair just fell to a fresh session low of 187.20.

Trades below hourly 50-MA

The slightly less hawkish BOE quarterly inflation report weighed over the British Pound, taking the GBP/JPY pair below its hourly 50-MA located at 187.46. The pair has been on a wild run for almost a month now – rising from the low of 174.86 to the daily high of 188.57.

The correction seen at the moment is largely driven by the downward revision for the GDP and inflation forecasts by the BOE. Fresh offers could be seen if the North American currency desks decide to join the party.

GBP/JPY Technical Levels

The immediate support is seen at 187.00, under which the pair could test its 5-DMA located at 186.21. On the flip side, a break above 187.50 could see the pair re-test 188.50 levels.

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