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20 Mar 2014
GBP/JPY is stalling through key resistance
FXStreet (Guatemala) - GBP/JPY has attempted to regain the upside on the 169 handle but is stalling through key resistance levels.
Most recently , from Japan, foreign bond investment (Mar 14) Yen 143.1B vs previous Y617.9B while foreign investment in Japan stocks (Mar 14) red Yen 1092.4B vs Yen 383.9B previous. However, and of far more significance, TD Securities noted that the UK Jobless Claims dropped by 34.6k in Feb, better than the -25k consensus call; “the unemployment rate was flat at 7.2% and wages grew by 1.4% Y/Y (mkt 1.3%), its highest level since June of last year. BoE minutes from the March meeting show a unanimous vote on both the interest rate and QE. Regarding GBP, the MPC noted that the gradual appreciation could continue if the UK economy appears to continue to outperform”. So, this, coupled with the tepid export growth in Japan that has been a concern for policymakers, who are counting on stronger shipments to help cushion any slide in domestic consumption after the sales tax rise is weighing on the Yen. The BoJ could increase stimulus as one measure to help spur domestic growth in Japan that in turn would weaken the currency.
GBP/JPY Levels
The 20 DMA is 170.45, the 50 DMA is 170.05 and the 200 DMA is 160.90. RSI (14) reads 58.11. Supports are ascending from 166.15, 166.80, 167.20, 167.55, and 168.20. Spot is 169.25 while resistances are 169.60, 170.20 and 171.60.
Most recently , from Japan, foreign bond investment (Mar 14) Yen 143.1B vs previous Y617.9B while foreign investment in Japan stocks (Mar 14) red Yen 1092.4B vs Yen 383.9B previous. However, and of far more significance, TD Securities noted that the UK Jobless Claims dropped by 34.6k in Feb, better than the -25k consensus call; “the unemployment rate was flat at 7.2% and wages grew by 1.4% Y/Y (mkt 1.3%), its highest level since June of last year. BoE minutes from the March meeting show a unanimous vote on both the interest rate and QE. Regarding GBP, the MPC noted that the gradual appreciation could continue if the UK economy appears to continue to outperform”. So, this, coupled with the tepid export growth in Japan that has been a concern for policymakers, who are counting on stronger shipments to help cushion any slide in domestic consumption after the sales tax rise is weighing on the Yen. The BoJ could increase stimulus as one measure to help spur domestic growth in Japan that in turn would weaken the currency.
GBP/JPY Levels
The 20 DMA is 170.45, the 50 DMA is 170.05 and the 200 DMA is 160.90. RSI (14) reads 58.11. Supports are ascending from 166.15, 166.80, 167.20, 167.55, and 168.20. Spot is 169.25 while resistances are 169.60, 170.20 and 171.60.