GBP/JPY Looking Technical Ahead of Bank of England Rate Decision
The Sterling Yen pair has experienced an unprecedented level of volatility over the last few months in a range of 96 BIG FIGURES since August of 2008! Now as the run on Yen seems to be easing and so much bad news for the Sterling already in the pipeline, it is not surprising the pair has received a bid in February. Tomorrow mornings rate decision, expected to be a 50 basis point ease, will take the interest rate structure at the BOE to multi-century lows again. However, with more negative comments this evening from the Bank of Japan’s Mizuno, most notably stating that the BOJ should prepare an “unusual” response and determine how to lower term interest rates, the GBP/JPY pair could be overdone. Looking at a short-term hourly retracement we see the pair reacting to technicals at the 61.8% retracement. We will also be looking for the 100 hour moving average to provide support if that level breaks and the full retracement to try to hold the pair, which might be difficult.
Loading ...
No Responses to “GBP/JPY Looking Technical Ahead of Bank of England Rate Decision”
Add a comment