GBP/JPY flirts with 23.6% Fib retracement level

By FXStreet FXStreet (Mumbai) – The three-day corrective rally in the GBP/JPY cross appears to have stalled around 169.84 (23.6% of 188.81-163.98) in early Europe today.

Eyes UK data and European stocks

The demand for JPY depends on the action in the European stocks. Traders would be interested to see if the stocks extend the corrective rally; especially since oil price correction appears to have stalled.

Meanwhile, UK CBI total trends survey figure due later today would throw a light on the manufacturer’s order book and influence demand for Sterling.

GBP/JPY Technical Levels

The pair could rise to 172.57 (Weekly 5-MA) if it manages to take out 169.84 (23.6% of 188.81-163.98). On the other hand, a failure to take out 169.84 may push the cross back to 10-DMA at 168.22.
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Source:: FX Street