6 Feb 2014
GBP/JPY breaks above 166.00
FXStreet (Córdoba) - The GBP/JPY broke above 166.00 during the American session and climbed to 166.83, reaching the strongest level since Monday. Cable erased most of the weekly losses on Thursday, as the Yen plummeted across the board.
The Japanese currency was among the worst performers weakened by risk appetite as stocks rose sharply on Europe and Wall Street.
GBP/JPY technical outlook
With Thursday’s rally the GBP/JPY gained upside momentum after breaking a short-term trading range that capped the price between 163.80 and 166.00. But on a wider perspective the pair is still facing downside pressure, particularly after breaking a week ago the 168.40/50 key support.
If the Pound pulls back below 166.00 the recovery could lose momentum. Below support levels could be located at 165.55, 165.00 (February 6 low) and 164.30. To the upside, resistance comes at 167.25 and 168.25.
The Japanese currency was among the worst performers weakened by risk appetite as stocks rose sharply on Europe and Wall Street.
GBP/JPY technical outlook
With Thursday’s rally the GBP/JPY gained upside momentum after breaking a short-term trading range that capped the price between 163.80 and 166.00. But on a wider perspective the pair is still facing downside pressure, particularly after breaking a week ago the 168.40/50 key support.
If the Pound pulls back below 166.00 the recovery could lose momentum. Below support levels could be located at 165.55, 165.00 (February 6 low) and 164.30. To the upside, resistance comes at 167.25 and 168.25.