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12 Mar 2014
GBP/JPY bounces off the lows
FXStreet (Guatemala) - Since dropping from the 171 handle, GBP/JPY is bounced off the 170.20 mark from demand felt in Sterling again pot weekly lows and the cross has managed territory in the 170.60’s.
Jane Foley, Senior Currency Strategist at Rabobank noted that in addition to safe haven demand, the firmer tone in the yen since the start of the year can also be linked to the fact that the market is no longer so confident that the BoJ will announce further monetary easing. “Although BoJ Governor Kuroda last month stated that the Bank “will not hesitate to adjust policy if necessary”, the firmer tone of data such as January factory orders, which rose at its fastest pace in 2 yrs, and the core CPI inflation rate which has reached a 5 yr high has played down speculation that further policy moves from the BoJ will be forthcoming. After this week’s policy meeting the BoJ statement struck a cautiously optimistic tone stating that “Japan's economy is expected to continue a moderate recovery as a trend”.
GBP/JPY Levels
The 20 DMA is 170.75, the 50 DMA is 170.35 and the 200 DMA is 160.45. RSI (14) reads 53.34. Supports are ascending from, 168.80, 169.65 and 170.15. Spot is 170.62 while resistances are 171.20, 172.10 172.85, 173.65 and 174.85.
Jane Foley, Senior Currency Strategist at Rabobank noted that in addition to safe haven demand, the firmer tone in the yen since the start of the year can also be linked to the fact that the market is no longer so confident that the BoJ will announce further monetary easing. “Although BoJ Governor Kuroda last month stated that the Bank “will not hesitate to adjust policy if necessary”, the firmer tone of data such as January factory orders, which rose at its fastest pace in 2 yrs, and the core CPI inflation rate which has reached a 5 yr high has played down speculation that further policy moves from the BoJ will be forthcoming. After this week’s policy meeting the BoJ statement struck a cautiously optimistic tone stating that “Japan's economy is expected to continue a moderate recovery as a trend”.
GBP/JPY Levels
The 20 DMA is 170.75, the 50 DMA is 170.35 and the 200 DMA is 160.45. RSI (14) reads 53.34. Supports are ascending from, 168.80, 169.65 and 170.15. Spot is 170.62 while resistances are 171.20, 172.10 172.85, 173.65 and 174.85.