17 Mar 2015
GBP/JPY to drop to 177 irrespective of FOMC outcome – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analayst, Omkar Godbole, explains that GBP might remain soft against the Yen and test 177 levels irrespective of the outcome of FOMC, with the pair currently having erased all of its Monday’s gains, dropping from 180.71 to around 179.00 levels.
Key Quotes
“The GBP/JPY pair has erased its entire gains witnessed on Monday as it dropped from the high of 180.17 to trade at 179.00 levels at the time of writing.”
“Ahead of the FOMC meeting tomorrow, the British Pound is weakening across the board, tracking the decline in the UK Gilt yields on speculations of a delay in the interest rate hike.”
“The pair, in my opinion, could extend the drop to 177.00 levels irrespective of the outcome of the FOMC meeting as –
The British Pound is likely to be an under performer even if the US FOMC statement due for release this week is ultra-dovish.
…the (UK 10yr) yield could drop even further to 1.408%, a level last seen in July 2013. Thus, the British Pound could extend losses further against the Yen.
Yen crosses could drop as Fed nears rate hike.”
“The bearish view on the GBP/JPY pair faces risk from the daily close above 180.00 levels. A fresh technical buying interest could emerge above 180.00, which could take the pair to 180.93 levels.”
“However, both the daily and the weekly RSI favor further sell-off in the pair. Thus, a sell-off anticipated at the current level of 179.00 for a target of 177.00 provides sufficient breathing space with reversal seen above 180.00 levels.”
Key Quotes
“The GBP/JPY pair has erased its entire gains witnessed on Monday as it dropped from the high of 180.17 to trade at 179.00 levels at the time of writing.”
“Ahead of the FOMC meeting tomorrow, the British Pound is weakening across the board, tracking the decline in the UK Gilt yields on speculations of a delay in the interest rate hike.”
“The pair, in my opinion, could extend the drop to 177.00 levels irrespective of the outcome of the FOMC meeting as –
The British Pound is likely to be an under performer even if the US FOMC statement due for release this week is ultra-dovish.
…the (UK 10yr) yield could drop even further to 1.408%, a level last seen in July 2013. Thus, the British Pound could extend losses further against the Yen.
Yen crosses could drop as Fed nears rate hike.”
“The bearish view on the GBP/JPY pair faces risk from the daily close above 180.00 levels. A fresh technical buying interest could emerge above 180.00, which could take the pair to 180.93 levels.”
“However, both the daily and the weekly RSI favor further sell-off in the pair. Thus, a sell-off anticipated at the current level of 179.00 for a target of 177.00 provides sufficient breathing space with reversal seen above 180.00 levels.”