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22 May 2014
GBP/JPY holding form on 171 handle
FXStreet (Guatemala) - GBP/JPY is trading at 171.51, up 0.14% on the day, having posted a daily high at 171.88 and low at 171.22.
GBP/JPY is maintaining form on the 171 handle and the bulls are building confidence as the pair moves back into line of the hourly rising trend line and ascending support moves onto 171.40 Meanwhile, The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is neutral. From the calendar, we note that the May Flash Markit PMI rose from 49.4 to 49.9 in Japan, but still remains in contraction territory. Then , we look at the UK and RBS strategists explained their concerns, “We continue to be fearful of the UK's triple's imbalances -1) a growing and persistent current account deficit, 2) an increasingly indebted household sector and 3) a stubbornly large fiscal deficit. Overnight data that reveal a worse than expected budget position and a recovery that remains heavily dependent on consumption rather than exports/investment play to the idea that the air above GBP may be thinner than many may think it is”.
GBP/JPY Levels
At the time of writing, RSI is neutral at 60.88, up from 56.48 at the last hour close, while ADX is ranging at 27.82, up from 12.3. Spot is presently trading at 171.54, and next resistance can be seen at 171.88 (Daily High), 171.94 (Daily Classic R1), 172.23 (Weekly Classic R1), 172.57 (Daily Classic R2) and 172.86 (Monthly High). Next support to the downside can be found at 171.51 (Yesterday's High), 171.48 (Daily 20 SMA), 171.41 (Hourly 20 EMA), 171.32 (Daily Open) and 171.31 (Weekly High).
GBP/JPY is maintaining form on the 171 handle and the bulls are building confidence as the pair moves back into line of the hourly rising trend line and ascending support moves onto 171.40 Meanwhile, The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is neutral. From the calendar, we note that the May Flash Markit PMI rose from 49.4 to 49.9 in Japan, but still remains in contraction territory. Then , we look at the UK and RBS strategists explained their concerns, “We continue to be fearful of the UK's triple's imbalances -1) a growing and persistent current account deficit, 2) an increasingly indebted household sector and 3) a stubbornly large fiscal deficit. Overnight data that reveal a worse than expected budget position and a recovery that remains heavily dependent on consumption rather than exports/investment play to the idea that the air above GBP may be thinner than many may think it is”.
GBP/JPY Levels
At the time of writing, RSI is neutral at 60.88, up from 56.48 at the last hour close, while ADX is ranging at 27.82, up from 12.3. Spot is presently trading at 171.54, and next resistance can be seen at 171.88 (Daily High), 171.94 (Daily Classic R1), 172.23 (Weekly Classic R1), 172.57 (Daily Classic R2) and 172.86 (Monthly High). Next support to the downside can be found at 171.51 (Yesterday's High), 171.48 (Daily 20 SMA), 171.41 (Hourly 20 EMA), 171.32 (Daily Open) and 171.31 (Weekly High).