GBP/JPY Price Analysis: Plunges below 157.50 after the BoE’s 50 bps hike
|- GBP/JPY nosedives 200 pips or 1.30% on Thursday, courtesy of a BoE rate hike.
- GBP/JPY Price Analysis: Downward biased, but it could print a leg-up before the downtrend continues.
With the Bank of England (BoE) hiking rates by 50 basis points, the GBP/JPY surprisingly plummets across the board, more than 200 pips on Thursday. At the time of writing, the GBP/JPY exchanges hands at 157.39 after hitting a daily high of 159.60.
GBP/JPY Price Analysis: Technical outlook
The Pound Sterling (GBP) is losing traction against most G8 currencies. In the case of the GBP/JPY pair, price action dived sharply, towards new weekly lows, after smashing February’s 1 low of 158.90. That accelerated Sterling’s fall, extending below a one-month-old downslope trendline broken on January 20, that was acting as support and capped Wednesday’s drop.
On its way south, the GBP/JPY fell below the 158.00 figure, with bears eyeing to test the January 13 daily low at 155.64, followed by the YTD low at 155.35. But firstly, GBP/JPY bears would need to deal with the January 18 low of 157.27, ahead of the 157.00 figure, and followed by the January 17 low of 156.38.
On the other hand, the GBP/JPY reclaiming 158.00 could pave the way for a leg-up before resuming the downtrend. The GBP/JPY key resistance levels would be a downslope trendline at around 158.20-30, followed by the February 1 daily low of 158.90.
GBP/JPY Key Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.