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31 Jul 2015
GBP/JPY supported on BoE, offered on Global risks
FXStreet (Guatemala) - GBP/JPY is currently trading at 193.64 with a high of 194.00 and a low of 193.16.
GBP/JPY is supported on bearish attempts at 193.20 at the end of this month and risen up from the 191 handle as markets start to look ahead to 2016, or some even as early as this year, for the BoE to raise rates, which is underpinning demand for sterling. GBP/USD is up three big figures this month on such optimism in the UK economy despite a looming hike from the Fed this September.
In respect of drivers in the Yen, it should remain supported on the back of global risks to the finical markets with falling commodity prices and the uncertainties in China, Greece and the general EM FX weakness. Derek Halpnenny, analyst at The Bank of Tokyo Mitsubishi UFJ also explained that the large current account surplus in Japan is a reminder of potential repatriation flows that will increasingly emerge at higher USD/JPY levels.
GBP/JPY: Bullish bias above 192.00
Technically, the MAC D on the short-term charts is bearish while RSI leaves us in neutral as we level out at June's last trading week prices before the bearish gap at the highs of the same week. The highs for July are first target to accomplish on the longer dated sticks, in a bullish trend above 192. Bulls need to close the gap at 194.63 and July highs with 196 as the psychological target that could entice a flurry of buying activity and set the cross into a defined bullish trend again, extending April's rally from 174.80.
GBP/JPY is supported on bearish attempts at 193.20 at the end of this month and risen up from the 191 handle as markets start to look ahead to 2016, or some even as early as this year, for the BoE to raise rates, which is underpinning demand for sterling. GBP/USD is up three big figures this month on such optimism in the UK economy despite a looming hike from the Fed this September.
In respect of drivers in the Yen, it should remain supported on the back of global risks to the finical markets with falling commodity prices and the uncertainties in China, Greece and the general EM FX weakness. Derek Halpnenny, analyst at The Bank of Tokyo Mitsubishi UFJ also explained that the large current account surplus in Japan is a reminder of potential repatriation flows that will increasingly emerge at higher USD/JPY levels.
GBP/JPY: Bullish bias above 192.00
Technically, the MAC D on the short-term charts is bearish while RSI leaves us in neutral as we level out at June's last trading week prices before the bearish gap at the highs of the same week. The highs for July are first target to accomplish on the longer dated sticks, in a bullish trend above 192. Bulls need to close the gap at 194.63 and July highs with 196 as the psychological target that could entice a flurry of buying activity and set the cross into a defined bullish trend again, extending April's rally from 174.80.