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10 Sep 2015
GBP/JPY: Paring post BOE minutes gains, trades around 186.70
FXStreet (Mumbai) - The buying interest in Sterling spiked as the just released BOE minutes carried an upbeat tone on the UK economy, sending the GBP/JPY to a session high of 187.33, before the UK unit pared gains and fell back to 186.90.
Gains capped by concerns regarding the strong Pound
The BOE minutes held the view intact that the time for a rate hike is approaching fast, however, the policymakers expressed concerns regarding the disinflationary impact of the strong Pound. The markets now appear to be pricing-in these concerns. Consequently, the GBP/JPY cross fell back from the high of 187.33 to trade around 186.90.
Meanwhile, the offered tone around JPY remains intact as BOJ members talked up the possibility of more QQE on Oct 30 meet earlier today.
GBP/JPY Technical Levels
The immediate resistance is located at 187.50 (Aug 31 high), above which the cross could target 188.00 levels. On the other side, support is seen at 186.43 (previous day’s high) and 185.47 (200-DMA).
Gains capped by concerns regarding the strong Pound
The BOE minutes held the view intact that the time for a rate hike is approaching fast, however, the policymakers expressed concerns regarding the disinflationary impact of the strong Pound. The markets now appear to be pricing-in these concerns. Consequently, the GBP/JPY cross fell back from the high of 187.33 to trade around 186.90.
Meanwhile, the offered tone around JPY remains intact as BOJ members talked up the possibility of more QQE on Oct 30 meet earlier today.
GBP/JPY Technical Levels
The immediate resistance is located at 187.50 (Aug 31 high), above which the cross could target 188.00 levels. On the other side, support is seen at 186.43 (previous day’s high) and 185.47 (200-DMA).