12 Feb 2014
GBP/JPY through 170 handle
FXStreet (Guatemala) - GBP/JPY has achieved a new handle and has reached a high on 170 of 170.24.
The theme remains for a strong Sterling with analysts at major banks shifting on their expectations of a hike to come in as soon as Q2 2015. “During the Inflation Report press conference, Deputy Governor Charles Bean stated that the MPC would want to begin monetary policy tightening policy before spare capacity in the economy was fully eliminated. The Report itself provided an explicit estimate of the MPC's view of the size of the output gap: -1% to -1.5% of GDP, adding that the MPC's current judgement on spare capacity 'pointed to less slack' than at the time of the November 2013 Report. On our estimates this hints at an earlier (Q1 2015 Bank Rate hike)”, explained analysts at The Royal Bank of Scotland. This coupled with a better bid USD/JPY through to 102.70 the high.
GBP/JPY Levels
The 20 DMA is 169.20, the 50 DMA is 170.00 and the 200 DMA is 158.85. RSI (14) reads 61.32. Supports are ascending from 165.80, 166.15, 166.95, 167.10 and 169.30. Spot is 170.02 with key resistances at 171.45 and 172.30.
The theme remains for a strong Sterling with analysts at major banks shifting on their expectations of a hike to come in as soon as Q2 2015. “During the Inflation Report press conference, Deputy Governor Charles Bean stated that the MPC would want to begin monetary policy tightening policy before spare capacity in the economy was fully eliminated. The Report itself provided an explicit estimate of the MPC's view of the size of the output gap: -1% to -1.5% of GDP, adding that the MPC's current judgement on spare capacity 'pointed to less slack' than at the time of the November 2013 Report. On our estimates this hints at an earlier (Q1 2015 Bank Rate hike)”, explained analysts at The Royal Bank of Scotland. This coupled with a better bid USD/JPY through to 102.70 the high.
GBP/JPY Levels
The 20 DMA is 169.20, the 50 DMA is 170.00 and the 200 DMA is 158.85. RSI (14) reads 61.32. Supports are ascending from 165.80, 166.15, 166.95, 167.10 and 169.30. Spot is 170.02 with key resistances at 171.45 and 172.30.