23 Oct 2013
GBP/JPY more demand to follow?
FXstreet.com (London) - The China news over night has caught the market by surprise and at a very vulnerable time.
GBP/JPY fell sharply from 159.39 to eventually break supports down to 156.87 with Sterling overall following suit as well. Research teams at BBH explained,“…the weaker dollar theme that surfaced from the US payrolls data was reversed by a bout of risk aversion overnight, which was largely driven by negative financial news from China”. Overall, the global growth picture doesn't look pretty and the Yen has improved on risk aversion. Meanwhile, GBP/JPY has however found a bounce back into the 157.00 territory towards 157.47 with RSI reading over sold.
GBP/JPY Levels
The 20 DMA is 1578.60, the 50 DMA is 156.25 and the 200 DMA is 150.55. RSI (14) reads 27.48. Supports are ascending from 156.45 156.85 and 157.10. Spot is currently 157.25 while resistances are in at 158.00, 158.75, 159.55, 160.00 and 160.40.
GBP/JPY fell sharply from 159.39 to eventually break supports down to 156.87 with Sterling overall following suit as well. Research teams at BBH explained,“…the weaker dollar theme that surfaced from the US payrolls data was reversed by a bout of risk aversion overnight, which was largely driven by negative financial news from China”. Overall, the global growth picture doesn't look pretty and the Yen has improved on risk aversion. Meanwhile, GBP/JPY has however found a bounce back into the 157.00 territory towards 157.47 with RSI reading over sold.
GBP/JPY Levels
The 20 DMA is 1578.60, the 50 DMA is 156.25 and the 200 DMA is 150.55. RSI (14) reads 27.48. Supports are ascending from 156.45 156.85 and 157.10. Spot is currently 157.25 while resistances are in at 158.00, 158.75, 159.55, 160.00 and 160.40.