29 Nov 2013
GBP/JPY to crack 168.00?
FXstreet.com (London) - GBP/JPY has spiked up 70 pips moving back towards the 168 handle while sterling is broadly higher across the board.
Derek Halpenny, The Bank of Tokyo-Mitsubishi UFJ said there have been two clear trends in the foreign exchange market in recent weeks; yen selling and pound buying. “Data released today from Japan certainly supports that yen selling momentum while we would question the BOE decision yesterday as being supportive of the momentum of pound buying – more on that below. In Japan today, the CPI data continued to show evidence of underlying price pressures. The core nationwide annual CPI rate jumped from 0.7% in September to 0.9% in October while more importantly, the core-core annual rate increased from 0.0% to 0.3%, which was the highest annual reading since August”. However, Halpenny also noted that the services inflation rather than goods inflation is moving higher too which would be more suggestive of underlying upward price pressures less related to the devaluation of the yen.
GBP/JPY Levels
The 20 DMA is 161.00, the 50 DMA is 159.00 and the 200 DMA is 152.80. RSI (14) reads 65.95. Supports are ascending from 165.75, 166.00, 166.40 and 167.00. Spot is currently 167.66 while resistances are 167.80, 168.15, 168.70, 170.45 and 173.00.
Derek Halpenny, The Bank of Tokyo-Mitsubishi UFJ said there have been two clear trends in the foreign exchange market in recent weeks; yen selling and pound buying. “Data released today from Japan certainly supports that yen selling momentum while we would question the BOE decision yesterday as being supportive of the momentum of pound buying – more on that below. In Japan today, the CPI data continued to show evidence of underlying price pressures. The core nationwide annual CPI rate jumped from 0.7% in September to 0.9% in October while more importantly, the core-core annual rate increased from 0.0% to 0.3%, which was the highest annual reading since August”. However, Halpenny also noted that the services inflation rather than goods inflation is moving higher too which would be more suggestive of underlying upward price pressures less related to the devaluation of the yen.
GBP/JPY Levels
The 20 DMA is 161.00, the 50 DMA is 159.00 and the 200 DMA is 152.80. RSI (14) reads 65.95. Supports are ascending from 165.75, 166.00, 166.40 and 167.00. Spot is currently 167.66 while resistances are 167.80, 168.15, 168.70, 170.45 and 173.00.