5 Sep 2013
GBP/JPY spikes on daily high as of 156.29 after BOE
FXstreet.com (Athens)- The GBP/JPY managed to climb near 156.30 area following BoE announcement.
The GBP/JPY moves on daily highs after BoE minutes
The GBP/JPY was trading near 156.00 area ahead of BoE minutes. As soon as BoE announcement was released, the pair spiked to a new daily high. The BoE announcement revealed that the Central Bank of England will “keep benchmark interest rate unchanged at 0.5%, and will reinvest 1.9GBP of the maturing gilts.” Furthermore, the pair might heading constantly upwards after the release due to the bullish breakout in other pound currencies. It is important to point out that UK 2 yr rates are also higher after the BoE, thus investors agree less or more on the uptrend sterling movement.
Technical Outlook and Strategic bias on GBP/JPY
We are ahead of G-20 summit and it could stated that the upward movement of the pair, is “more a function of global sentiment and much as positioning in equities is still heavy with positioning leaving it with a poor risk reward. The longer term trend is clear with more easing to compensate the VAT tax hike.” At the time of writing the pair is trading at 156.38, up 0.35%, after having just hit a new daily high as of 156.44. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought in the 15-minutes timeframe chart. Daily pivot point support can be found at S3: 155.31 S2: 154.92 S1: 154.53 and resistance at R1: 156.57 R2:156.95 R3:157.35, respectively.
The GBP/JPY moves on daily highs after BoE minutes
The GBP/JPY was trading near 156.00 area ahead of BoE minutes. As soon as BoE announcement was released, the pair spiked to a new daily high. The BoE announcement revealed that the Central Bank of England will “keep benchmark interest rate unchanged at 0.5%, and will reinvest 1.9GBP of the maturing gilts.” Furthermore, the pair might heading constantly upwards after the release due to the bullish breakout in other pound currencies. It is important to point out that UK 2 yr rates are also higher after the BoE, thus investors agree less or more on the uptrend sterling movement.
Technical Outlook and Strategic bias on GBP/JPY
We are ahead of G-20 summit and it could stated that the upward movement of the pair, is “more a function of global sentiment and much as positioning in equities is still heavy with positioning leaving it with a poor risk reward. The longer term trend is clear with more easing to compensate the VAT tax hike.” At the time of writing the pair is trading at 156.38, up 0.35%, after having just hit a new daily high as of 156.44. The FXstreet.com Trend Index shows the pair to be slightly bullish and overbought in the 15-minutes timeframe chart. Daily pivot point support can be found at S3: 155.31 S2: 154.92 S1: 154.53 and resistance at R1: 156.57 R2:156.95 R3:157.35, respectively.