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6 Sep 2013
GBP/JPY back above 154.70 zone
FXstreet.com (Chicago) - GBP/JPY stumbled to weekly lows at 154.14 prior to the closing of the American trading session. The Syrian conflict intensified as worries rose after Russian commentaries on Syrian support if the US were to strike the Middle Eastern nation.
Mixed results to close the week
Price action revealed the pound attempted to erased earlier losses but failed to do so once the 155.00 zone was reached. The pair had dropped to weekly lows losing over 100 pips in a few hours but managed to emerge back above the 154.00 zone. Earlier in the UK, industrial production was released at 0% vs. past 1.3%. Consumer inflation expectations were 3.2% vs. past 3.6% while manufacturing production was 0.2% vs. past 2.0%. The total trade balance was worse than expected at -3.085B vs. past -1.256B. The NIESR GDP estimate for August was 0.9% vs. past 0.7%, fueling the pair higher towards the end of the session. In Japan, the BoJ monthly economic survey stated the country was on a “modest and moderate” recovery and the coincident and leading economic indexes were released at 106.4 and 107.8 respectively. The markets closed with losses in Asia with the Nikkei 225 down -1.45% while the FTSE100 advanced 0.23%.
GBP/JPY Technical Levels
Technically speaking, the pair trades at 154.79 and oscillates between the supports at 154.44 (September 3rd lows), 154.00 (July 24th highs) ahead of 153.54 (August 23rd highs) and resistances at 155.42 (September 3rd highs), 156.00 (September 4th highs) followed by 156.41 (September 5th highs). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis and is offered below the EMA20.
Mixed results to close the week
Price action revealed the pound attempted to erased earlier losses but failed to do so once the 155.00 zone was reached. The pair had dropped to weekly lows losing over 100 pips in a few hours but managed to emerge back above the 154.00 zone. Earlier in the UK, industrial production was released at 0% vs. past 1.3%. Consumer inflation expectations were 3.2% vs. past 3.6% while manufacturing production was 0.2% vs. past 2.0%. The total trade balance was worse than expected at -3.085B vs. past -1.256B. The NIESR GDP estimate for August was 0.9% vs. past 0.7%, fueling the pair higher towards the end of the session. In Japan, the BoJ monthly economic survey stated the country was on a “modest and moderate” recovery and the coincident and leading economic indexes were released at 106.4 and 107.8 respectively. The markets closed with losses in Asia with the Nikkei 225 down -1.45% while the FTSE100 advanced 0.23%.
GBP/JPY Technical Levels
Technically speaking, the pair trades at 154.79 and oscillates between the supports at 154.44 (September 3rd lows), 154.00 (July 24th highs) ahead of 153.54 (August 23rd highs) and resistances at 155.42 (September 3rd highs), 156.00 (September 4th highs) followed by 156.41 (September 5th highs). According to the FXstreet.com trend index, the pair is strongly bearish on one-hour timeframe analysis and is offered below the EMA20.