After the Governor of the Bank of England, Mervyn King, sentenced its own economy last night, triggering even more losses in the markets, it was inevitable that the Sterling would be hit by the Yen.
The continuous vulnerability of the stocks is making the investors to seek the Japanese safe haven, waiting for a clearer picture of the financial and credit situation. This way, the yen is advancing 7.5% against the Sterling this week.
The GbpJpy is trading at 162.51, ranging from 160.96 and 168.00. The current price is under yesterday's close at 167.29. In the hourly graphics, the 20- and 50-day Exponential Mobile Averages (EMA) are under the 200-day EMA.
As the supports at 172.76 (September 20th, 2001 low) and 167.22 (June 8th, 2001 low) were broken, the traders are contemplating the next at 160.00 (key). The resistances are set at 182.03 (October 7th high), 188.51 (October 3rd high) and 197.44 (September 24th high).
Checking the hourly graphics again, the current price is under the 23.60% (233.01) and over the 0.00% (128.44) Fibonacci retracement lines. The volatility per hour is 1000 pips and the 60-minute Relative Strenght Index (RSI) is at 27 points, oversold.
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