21 Jan 2015
GBP/JPY extends drop after BOE minutes
FXStreet (Mumbai) - The GBP/JPY pair extended the drop to trade below 178.00 levels, after the Bank of England (BOE) minutes reduced the probability of an interest rate hike in the UK this year.
The pair now trades 1.22% lower for the day at 177.81 levels. The BOE minutes revealed a unanimous vote in favor of holding interest rate unchanged at record lows. The two dissenters - MacCafferty and Weale-dumped their rate hike vote in January meeting. Meanwhile, the dovish tone of the BOE minutes overshadowed the drop in the UK unemployment rate to 5.8% in three months to November.
GBP/JPY Technical Levels
The immediate support is now seen at 177.64, under which the pair could re-test the 200-DMA located at 117.07 levels. Meanwhile, resistance is seen at 178.34 and 178.64 (hourly 50-SMA) levels.
The pair now trades 1.22% lower for the day at 177.81 levels. The BOE minutes revealed a unanimous vote in favor of holding interest rate unchanged at record lows. The two dissenters - MacCafferty and Weale-dumped their rate hike vote in January meeting. Meanwhile, the dovish tone of the BOE minutes overshadowed the drop in the UK unemployment rate to 5.8% in three months to November.
GBP/JPY Technical Levels
The immediate support is now seen at 177.64, under which the pair could re-test the 200-DMA located at 117.07 levels. Meanwhile, resistance is seen at 178.34 and 178.64 (hourly 50-SMA) levels.