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GBP/JPY continues to slide

FXStreet (Mumbai) - The GBP/JPY pair fell to a fresh session low of 177.25 as the falling rate hike expectations in the UK continue to weigh over the British Pound.

GBP/JPY: Eyes weekly 50-MA

The pair could extend the slide to the weekly 50-MA located at 176.86 in case the Treasury yields in the US decline further, thereby leading to a broad based strength in the Japanese Yen. The UK Gilts are already under pressure after the release of a weak wage data and BOE minutes earlier today.

Much of the weakness seen today in the GBP/JPY is largely driven by a fall in the GBP/USD pair. However, the slide could be easily extended to the weekly 50-MA in case the USD/JPY pair declines sharply post the FOMC policy statement.

GBP/JPY Technical Levels

The immediate support is seen at 176.86 (weekly 50-MA), under which losses could be extended to 176.00 levels. On the other hand, a break above 178.22 could see the pair re-test 178.52 levels.

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