2 Sep 2013
152.66 (August 29th highs), 152.43 (August 19th highs)
FXstreet.com (Chicago) - GBP/JPY reached 153.27 highs extending bullish sentiment in favor of the pound. Bulls stampeded bears for an above 153.00 zone recovery ahead of Japanese data and manufacturing results in the UK.
No war?
Japan’s chief cabinet secretary Suga stated that figures are “beginning to show likely economic recovery” although risk aversion plays negatively for the yen. After safe-haven currency was bought heavily on fears of worldwide war against Syria driving the pair to 150.00 zone last week, market participants seem to be less risk averse as heavy sell-off indicates potential easing of conflict concerns. The UK stepping down to support the US military strike and the UN’s statement on 2-week weapon inspection has contributed to appeasing war anxiety in the markets. The tax-hike in consumption is another factor weighing greatly on the yen.
GBP/JPY Technical Levels – bullish momentum
Price action reveals heavy buying that has fueled the pair back above 153.00 zone. After resuming short-lived retracement from 152.90 area and bouncing off 152.40 lows, the pair trades at 153.17 between supports at 152.93 (August 20th highs), 152.66 (August 29th highs) ahead of 152.43 (August 19th highs) and resistances at 153.24 (August 26th lows) followed by 153.72 (August 26th highs) and 154.00 (key psychologically).
No war?
Japan’s chief cabinet secretary Suga stated that figures are “beginning to show likely economic recovery” although risk aversion plays negatively for the yen. After safe-haven currency was bought heavily on fears of worldwide war against Syria driving the pair to 150.00 zone last week, market participants seem to be less risk averse as heavy sell-off indicates potential easing of conflict concerns. The UK stepping down to support the US military strike and the UN’s statement on 2-week weapon inspection has contributed to appeasing war anxiety in the markets. The tax-hike in consumption is another factor weighing greatly on the yen.
GBP/JPY Technical Levels – bullish momentum
Price action reveals heavy buying that has fueled the pair back above 153.00 zone. After resuming short-lived retracement from 152.90 area and bouncing off 152.40 lows, the pair trades at 153.17 between supports at 152.93 (August 20th highs), 152.66 (August 29th highs) ahead of 152.43 (August 19th highs) and resistances at 153.24 (August 26th lows) followed by 153.72 (August 26th highs) and 154.00 (key psychologically).