The rally, however, was short-lived and price pulled back sharply to close the NY down 0.7% on the day at 127.08. Technically speaking, the market stalled out just ahead of key MA resistance at 128.97 (100-week EMA), and a 61.8% Fibonacci retracement level at 127.80 (133.46/118.75 decline) also attracted sellers.
Fundamentally speaking, Eric Theoret, Currency Strategist at Scotiabank says that the latest easing from the BoJ “should help mitigate some of the upward pressure on JPY that might have occurred as a result of recent developments in relative monetary policy, specifically vs the Fed.”
GBP/JPY last sits quietly around the 127.10 mark in early Asia. To the immediate downside, the 9-day EMA at 126.60 offers support, then 126.17 (7 Sep high) and 125.81 (June 21 high). Upside rallies may encounter resistance at 127.46 (9-hr EMA), then at the mentioned Fibonacci resistance zone (127.80).
No comments:
Post a Comment