21 Jan 2015
GBP/JPY tanks after being rejected at 180.00 handle
FXStreet (Mumbai) - The GBP/JPY pair fell sharply after failing near 180.00 levels post the Bank of Japan announced a cut in the inflation forecast and expanded loan scheme instead of QQE program.
The pair currently trades 0.93% lower at 178.31 levels, compared to the previous session’s close at 179.67 levels. The BOJ cut its core consumer inflation forecast for the year beginning in April to 1.0% from 1.7%. Meanwhile, the bank expanded one of the two year loan scheme by JPY 3 trillion. However, the Yen strengthened across the board the BOJ refrained from expanding the size of its QQE program. Meanwhile, fresh cues from the UK Gilt yields are likely to come-in during the European session.
GBP/JPY Technical Levels
The immediate support is seen at 178.00 levels, under which the pair could test the 200-DMA located at 177.07. Meanwhile, resistance is seen at 178.61 (hourly 200-SMA) and 180.92 (100-DMA) levels.
The pair currently trades 0.93% lower at 178.31 levels, compared to the previous session’s close at 179.67 levels. The BOJ cut its core consumer inflation forecast for the year beginning in April to 1.0% from 1.7%. Meanwhile, the bank expanded one of the two year loan scheme by JPY 3 trillion. However, the Yen strengthened across the board the BOJ refrained from expanding the size of its QQE program. Meanwhile, fresh cues from the UK Gilt yields are likely to come-in during the European session.
GBP/JPY Technical Levels
The immediate support is seen at 178.00 levels, under which the pair could test the 200-DMA located at 177.07. Meanwhile, resistance is seen at 178.61 (hourly 200-SMA) and 180.92 (100-DMA) levels.