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Forex pairs in this Article » GBP/USD, USD/JPY (Moscow) - GBP/JPY is well bid during Asian hours as the cross opened at 171.12 and moved to intraday high of 171.79

GBP/JPY is gaining ground

GBP/JPY tries to hold ground above the sloping resistance line of 171.60. The cross is looking pretty strong today during Tokyo session. We believe that the longer-term sentiment in the cross is still bearish, but in the sorter-term perspective GBP/JPY may run higher due to general JPY weakness. Japan published its machinery orders, which came out higher than expected at 9.3% against forecasted 1.1%, and the corporate goods price index for December. This inflation indicator of minor importance showed grew 0.3% m/m, 2.6% y/y in line with expectations. But GBP/JPY ignored the positive info. No UK reports are published today. It means that the GBP/JPY dynamics will be influenced mainly by technical factors and overall market sentiment. US inflation data may have a knock-on effect on the cross. Watch out for 171.00, once it is broken the downside movement will gain traction. To the upside, 172.00 is the key. Once it is broken, the cross may go higher to 172.70.

What are today’s key GBP/JPY levels?

Today's central pivot point can be found at 171.11, with support below at 170.62, 169.94 and 169.45, with resistance above at 171.79, 172.29 and 172.96. Hourly Moving Averages are bullish, with the 200SMA at 171.36 and the daily 20EMA at 170.97. Hourly RSI is neutral at 61.21
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