6 Jan 2014
GBP/JPY hits 170.50 confluence, steady selling
FXstreet.com (Bali) - GBP/JPY is going through a sharp decline along the Asian time frame, with a soaring Yen capitalizing on the miseries of the British Pound in the current session.
The slippage in the Nikkei 225, down over 2%, as Japanese banks return from holidays, strengthened the allure towards the Yen. If we throw into the mix intense unraveling of longs in GBP/USD, the end result is a GBP/JPY 150+ pips lower for the day, currently at 170.50 vs 172.05 last NY close.
Technically, the GBP/JPY just came into contact with a confluence's juncture, as both the daily Kijun and 20-day EMA, interest at the 170.50 mid round number, ahead of stronger static support at 170.00. On the upside, the most immediate cluster of supply should come at around 171.00.
The slippage in the Nikkei 225, down over 2%, as Japanese banks return from holidays, strengthened the allure towards the Yen. If we throw into the mix intense unraveling of longs in GBP/USD, the end result is a GBP/JPY 150+ pips lower for the day, currently at 170.50 vs 172.05 last NY close.
Technically, the GBP/JPY just came into contact with a confluence's juncture, as both the daily Kijun and 20-day EMA, interest at the 170.50 mid round number, ahead of stronger static support at 170.00. On the upside, the most immediate cluster of supply should come at around 171.00.