Back
8 Dec 2015
GBP/JPY breaches 50-DMA support, drops below 185.00
FXStreet (Mumbai) - The GBP/JPY pair took out the 50-DMA support at 185.11 and fell to an intraday low of 184.83 ahead of the monthly industrial production data in the UK.
Eyes UK data
Sterling traders are interested to see if the October manufacturing production data confirms the sharp uptick in the activity highlighted by the PMI manufacturing figure released in the first week of November.
Following the data release, the focus may shift back on the China-led risk-off, which means the Yen may remain in demand for the rest of the day.
GBP/JPY Technical Levels
The pair has now recovered to 185.00 levels. The immediate resistance is seen at 50-DMA at 185.11 and 4-hour 50-MA at 184.21, above which the cross could target 4-hour 200-MA at 185.92. On the other hand, a break below the daily low of 184.83 would open doors for a drop to 184.25 (Nov 27 low).
Eyes UK data
Sterling traders are interested to see if the October manufacturing production data confirms the sharp uptick in the activity highlighted by the PMI manufacturing figure released in the first week of November.
Following the data release, the focus may shift back on the China-led risk-off, which means the Yen may remain in demand for the rest of the day.
GBP/JPY Technical Levels
The pair has now recovered to 185.00 levels. The immediate resistance is seen at 50-DMA at 185.11 and 4-hour 50-MA at 184.21, above which the cross could target 4-hour 200-MA at 185.92. On the other hand, a break below the daily low of 184.83 would open doors for a drop to 184.25 (Nov 27 low).