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GBP/JPY might test 180.00 ahead of BOE’s QIR – FXStreet

FXStreet (Barcelona) - According to FXStreet Editor and Analyst, Omkar Godbole, the GBP/JPY pair might test 180.00 levels ahead of Thursday’s Bank of England’s Inflation Report, with US yields and the ongoing Greek debt issue expected to guide the pair lower.

Key Quotes

“The GBP/JPY pair is hovering close to 182.00 levels, up 0.70% for the day despite of a weakerthan‐ expected Industrial production data in the UK.”

“The gains have been driven largely by a rise in the USD/JPY pair due to the strength seen in the US Treasury yields.”

“Given the thin UK data docket in the next couple of days, the pair is likely to take cues from the movement in the US Treasury yields and the Greek debt issue.”

“The GBP/JPY pair is likely to fall back to 180.00 levels ahead of Thursday’s Bank of England Quarterly inflation report.”

“On Technical basis, the pair has struggled to sustain gains above the 50‐DMA since past three trading sessions.”

“The immediate gains appear capped around 182.00 (weekly 10‐DMA) levels. Thus, a sell‐off anticipated at the current level provides an attractive risk‐reward ratio.”

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