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11 Mar 2014
GBP/JPY grinds its way lower after BOJ decision
FXStreet (Moscow) - GBP/JPY is pressed down due to JPY growth across the board following the Bank of Japan monetary policy decision. The cross dropped below 172.00 to current level of 171.80.
GBP bulls need new incentives
GBP/JPY just followed the general GBP trend. The British currency fell down mostly on technical factors as the triggered without any visible fundamental reasons. If that was the case, it may rebound today, especially if the macroeconomic reports are favorable enough. We are waiting for the January industrial production numbers that are expected to show a strong y/y growth; and Inflation report hearings. It is interesting to note that many observers still regard the BOE as the first major central bank to raise rates despite mixed economic picture of the recent months. So if the comments of the bankers are hawkish enough, the GBP bulls may receive another incentive push the currency higher. Though, we believe that negative surprise will be much more influential. The key levels to watch: the nearest resistance is seen at 172.00 (1h 50 EMA), once it is broken, the cross will move to 172.30/40 area; the support is seen at 171.60 and followed by 171.00
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 172.08, with support below at 171.27, 170.64, and 169.83, with resistance above at 172.71, 173.52 and 174.15. Hourly Moving Averages are mostly neutral, with the 200SMA at 170.89 and the daily 20EMA at 170.63. Hourly RSI is neutral at 49.
GBP bulls need new incentives
GBP/JPY just followed the general GBP trend. The British currency fell down mostly on technical factors as the triggered without any visible fundamental reasons. If that was the case, it may rebound today, especially if the macroeconomic reports are favorable enough. We are waiting for the January industrial production numbers that are expected to show a strong y/y growth; and Inflation report hearings. It is interesting to note that many observers still regard the BOE as the first major central bank to raise rates despite mixed economic picture of the recent months. So if the comments of the bankers are hawkish enough, the GBP bulls may receive another incentive push the currency higher. Though, we believe that negative surprise will be much more influential. The key levels to watch: the nearest resistance is seen at 172.00 (1h 50 EMA), once it is broken, the cross will move to 172.30/40 area; the support is seen at 171.60 and followed by 171.00
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 172.08, with support below at 171.27, 170.64, and 169.83, with resistance above at 172.71, 173.52 and 174.15. Hourly Moving Averages are mostly neutral, with the 200SMA at 170.89 and the daily 20EMA at 170.63. Hourly RSI is neutral at 49.