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4 Mar 2015
GBP/JPY drops UK service sector expands at a slower rate
FXStreet (Mumbai) - The GBP/JPY pair fell to 183.40 levels after the data in the UK showed the service sector expanded at a slower rate in February than previously anticipated.
GBP/JPY: Could it fall to 100-DMA?
The weaker-than-expected data weighed heavily over the British Pound, although the Gilt yields are still in a positive territory. The 10-year UK gilt yield currently trades at 1.866%; up 2.4 basis points, compared to the pre-data level of 1.881%. The strength in the UK gilt yield could help cap losses in the GBP/JPY pair.
However, the losses could be extended to the 100-DMA located at 183.09, if the Gilt yields in the UK fail to sustain the gains and fall into losses.
GBP/JPY Technical Levels
The immediate support is seen at the 100-DMA at 183.09, under which prices could fall to 182.59 levels. On the flip side, a rise above the hourly 200-MA at 183.98 could send the pair higher to 184.23 levels.
GBP/JPY: Could it fall to 100-DMA?
The weaker-than-expected data weighed heavily over the British Pound, although the Gilt yields are still in a positive territory. The 10-year UK gilt yield currently trades at 1.866%; up 2.4 basis points, compared to the pre-data level of 1.881%. The strength in the UK gilt yield could help cap losses in the GBP/JPY pair.
However, the losses could be extended to the 100-DMA located at 183.09, if the Gilt yields in the UK fail to sustain the gains and fall into losses.
GBP/JPY Technical Levels
The immediate support is seen at the 100-DMA at 183.09, under which prices could fall to 182.59 levels. On the flip side, a rise above the hourly 200-MA at 183.98 could send the pair higher to 184.23 levels.