Bounces off two-week lows, buyers eye 188.00

  • GBP/JPY rebounds from low, buoyed by changing market sentiments and central bank rate speculations.
  • Break above Tenkan-Sen (187.72) may signal uptrend, eyeing recent high at 188.91, with 188.00 as pivotal.
  • Downside risks if below 186.51; potential supports at 185.77, key 185.00 level, and 184.47 low.

The British Pound (GBP) pares earlier losses against the Japanese Yen (JPY) on Tuesday, even though data eased the pressure off the Bank of England (BoE) to keep interest rates higher. Therefore, the GBP/JPY cross-pair trades at 187.34 after hitting a daily low of 186.51.

From the daily chart perspective, the GBP/JPY is trading sideways just below the Tenkan-Sen level at 187.72 dot. If buyers lift the exchange rate above the Tenkan Sen, that will open the door to challenging the January 23 high at 188.91, but firstly they would need to reclaim 188.00. On the flip side, if sellers step in and drag prices below the January 30 low of 186.51, that will open the door to challenge the Senkou Span A level at 185.77, followed by the psychological 185.00 figure, ahead of the January 12 daily low of 184.47.