24 Mar 2015
GBP/JPY falls below 178.00
FXStreet (Córdoba) - The GBP/JPY pair broke below 178.00 and dropped to 177.78 reaching the lowest level since last Thursday as the pound weakened across the board after inflation data from the United Kingdom.
The Consumer Price Index index was unchanged over the last 12 month; analysts were expecting a reading of +0.1% in the annual rate. Other readings on UK inflation were also below expectations and triggered a decline of the pound in the market. “This is a new historical low (for the CPI) and we are expecting inflation to go below zero in March. In other words, 'deflation' is approaching in the UK”, noted analysts from Danske Bank.
GBP/JPY near the lows
GBP/JPY is trading at the moment slightly below 178.00, and remains under pressure as GBP/USD falls toward 1.4900 and while USD/JPY tests an important short term support at 119.30.
To the downside, the immediate support lies at 177.70 (Mar 19 low) and below here at 117.10/15 (Mar 18 low); below the last level the pair would be trading at the lowest in almost two months. On the opposite direction, resistance could be located at 178.40 (intraday level), 179.20/30 (daily high) and 180.10.
The Consumer Price Index index was unchanged over the last 12 month; analysts were expecting a reading of +0.1% in the annual rate. Other readings on UK inflation were also below expectations and triggered a decline of the pound in the market. “This is a new historical low (for the CPI) and we are expecting inflation to go below zero in March. In other words, 'deflation' is approaching in the UK”, noted analysts from Danske Bank.
GBP/JPY near the lows
GBP/JPY is trading at the moment slightly below 178.00, and remains under pressure as GBP/USD falls toward 1.4900 and while USD/JPY tests an important short term support at 119.30.
To the downside, the immediate support lies at 177.70 (Mar 19 low) and below here at 117.10/15 (Mar 18 low); below the last level the pair would be trading at the lowest in almost two months. On the opposite direction, resistance could be located at 178.40 (intraday level), 179.20/30 (daily high) and 180.10.