3 Sep 2013
GBP/JPY supported on strong UK data
FXstreet.com (London) - In Japan data was mixed while UK data continues to print a bullish picture for sterling.
Marc Chandler, at BBH Global Currency Strategy Team explains, “The monetary base is exploding under QE and is up 42% year-over-year and wage earnings rose 0.4% in July. However, there was weakness there below the surface. Base wages were off 0.4% and the June figure was revised to -0.6% from -0.1% initially. Yesterday's capex figures point to an upward revision in Q2 GDP when released next week, but now the word is that Prime Minister Abe wants to wait for the next Tankan report to make a formal announcement. Meanwhile, the UK data reinforced the trend of strong releases lately. The BoE on Thursday is going to be the main UK event for the week, where there is still the risk that the Bank attempts to push back on market expectations for the timing of an eventual rate hike. Then the US payrolls will be in focus and will be make or break for September tapering, according to Cristian Maggio, Senior Emerging Markets Strategist, Rates and FX Research at TD Securities. “…with 100k being the key threshold.”
GBP/JPY levels
The 20 DMA is 152.10, the 50 DMA is 151.50 and the 200 DMA is 146.90. RSI (14) reads 63.76. Supports are ascending from 152.85 153.05, 153.50, 154.30 and 154.50. Spot is currently 154.95 while resistances are 155.60, 156.10 and 156.75.
Marc Chandler, at BBH Global Currency Strategy Team explains, “The monetary base is exploding under QE and is up 42% year-over-year and wage earnings rose 0.4% in July. However, there was weakness there below the surface. Base wages were off 0.4% and the June figure was revised to -0.6% from -0.1% initially. Yesterday's capex figures point to an upward revision in Q2 GDP when released next week, but now the word is that Prime Minister Abe wants to wait for the next Tankan report to make a formal announcement. Meanwhile, the UK data reinforced the trend of strong releases lately. The BoE on Thursday is going to be the main UK event for the week, where there is still the risk that the Bank attempts to push back on market expectations for the timing of an eventual rate hike. Then the US payrolls will be in focus and will be make or break for September tapering, according to Cristian Maggio, Senior Emerging Markets Strategist, Rates and FX Research at TD Securities. “…with 100k being the key threshold.”
GBP/JPY levels
The 20 DMA is 152.10, the 50 DMA is 151.50 and the 200 DMA is 146.90. RSI (14) reads 63.76. Supports are ascending from 152.85 153.05, 153.50, 154.30 and 154.50. Spot is currently 154.95 while resistances are 155.60, 156.10 and 156.75.