5 Nov 2013
GBP/JPY trendless around 152.10 peaks
FXstreet.com (Chicago) - GBP/JPY reached the 158 zone again in the afternoon of the American trading session to cruise around that zone ahead of Tokyo’s opening later on.
UK data, Kuroda Speech
Earlier in the UK, economic results were better than expected with the Markit Services PMI at 62.5 vs. expected 59.8 and prior 60.3. In Japan, governor Kuroda gave a speech on the Japanese economy and its monetary policy explaining “under the QQE, Japan's economy has been following the path toward achieving the 2 percent price stability target as expected” and adding “the biggest challenge facing Japan's economy is to overcome deflation. Over the nearly 15 years of deflation, inflation expectations of firms and households have declined and the deflationary mindset has been firmly embedded in their minds. Under deflation, holding of cash and deposits has become a relatively better investment. In fact, the total amount of currency and deposits held by Japanese firms has reached 230 trillion yen, equivalent to nearly 50 percent of the nominal GDP.”
GBP/JPY Technical Levels
Technically speaking, the pair is offered at 158 and oscillates between the supports aligned at 158 (October 16th highs), 157.62 (October 29th highs) ahead of 157.15 (October 16th lows) and the resistances set at 158.34 (October 22nd lows), 158.75 (October 18th highs) followed by 159.35 (October 22nd highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and flows below the EMA20. Hourly charts evidence a retracement that manifests around the 158.20 zone (fourth peak the past two weeks).
UK data, Kuroda Speech
Earlier in the UK, economic results were better than expected with the Markit Services PMI at 62.5 vs. expected 59.8 and prior 60.3. In Japan, governor Kuroda gave a speech on the Japanese economy and its monetary policy explaining “under the QQE, Japan's economy has been following the path toward achieving the 2 percent price stability target as expected” and adding “the biggest challenge facing Japan's economy is to overcome deflation. Over the nearly 15 years of deflation, inflation expectations of firms and households have declined and the deflationary mindset has been firmly embedded in their minds. Under deflation, holding of cash and deposits has become a relatively better investment. In fact, the total amount of currency and deposits held by Japanese firms has reached 230 trillion yen, equivalent to nearly 50 percent of the nominal GDP.”
GBP/JPY Technical Levels
Technically speaking, the pair is offered at 158 and oscillates between the supports aligned at 158 (October 16th highs), 157.62 (October 29th highs) ahead of 157.15 (October 16th lows) and the resistances set at 158.34 (October 22nd lows), 158.75 (October 18th highs) followed by 159.35 (October 22nd highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and flows below the EMA20. Hourly charts evidence a retracement that manifests around the 158.20 zone (fourth peak the past two weeks).