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21 Oct 2013
GBP/JPY to resume downside?
FXstreet.com (London) - GBP/JPY has benefited on a broadly higher dollar on the open with USD/JPY pairing back some of it’s losses.
GBP/JPY has been climbing since August and reached 160.00 at the start of the month. 154.72 has since been the low and currently the pair is a coin toss while it struggles with 158.85 resistance. Is it time to resume the downside again or can Sterling find a lift from a more hawkish MPC this week?
Data for GBP/JPY
The market’s attention will now shift to the US jobs data tomorrow and whilst some may largely ignore it, we may see some position squaring ahead of it that could see some profit taking around 98.00 the figure in USD/JPY which in turn might ease gains in the Sterling’s run in the cross, currently up 0.36% but easing up against highs of 158.79 and trading currently at 158.55. This week’s brings more important data including Japans September National Consumer Price index that will be released on Thursday while on the same day we will have Carneys speech. Before then, on Wednesday, markets will be turning their attention towards the MPC. Research teams said, “The collective view of economists is that the BoE are unlikely to hike rates before 2015, a sizeable minority expect no rate hike before 2016. Given that there is a lot of positive news already priced in to sterling, we do not expect the MPC minutes to have the capacity to lend more than modest support this week. That said, given that the USD is on the back foot cable is likely to remain well supported”.
GBP/JPY Levels
The 20 DMA is 157.50, the 50 DMA is 155.95 and the 200 DMA is 150.40. RSI (14) reads 61.29. Supports are ascending from 156.45, 156.80, 157.10 and 158.00. Spot is 158.55 while resistances are 158.85, 159.40,160.00 and 160.40.
GBP/JPY has been climbing since August and reached 160.00 at the start of the month. 154.72 has since been the low and currently the pair is a coin toss while it struggles with 158.85 resistance. Is it time to resume the downside again or can Sterling find a lift from a more hawkish MPC this week?
Data for GBP/JPY
The market’s attention will now shift to the US jobs data tomorrow and whilst some may largely ignore it, we may see some position squaring ahead of it that could see some profit taking around 98.00 the figure in USD/JPY which in turn might ease gains in the Sterling’s run in the cross, currently up 0.36% but easing up against highs of 158.79 and trading currently at 158.55. This week’s brings more important data including Japans September National Consumer Price index that will be released on Thursday while on the same day we will have Carneys speech. Before then, on Wednesday, markets will be turning their attention towards the MPC. Research teams said, “The collective view of economists is that the BoE are unlikely to hike rates before 2015, a sizeable minority expect no rate hike before 2016. Given that there is a lot of positive news already priced in to sterling, we do not expect the MPC minutes to have the capacity to lend more than modest support this week. That said, given that the USD is on the back foot cable is likely to remain well supported”.
GBP/JPY Levels
The 20 DMA is 157.50, the 50 DMA is 155.95 and the 200 DMA is 150.40. RSI (14) reads 61.29. Supports are ascending from 156.45, 156.80, 157.10 and 158.00. Spot is 158.55 while resistances are 158.85, 159.40,160.00 and 160.40.