24 Sep 2013
GBP/JPY extending losses; may find strong support
FXstreet.com (London) - GBP/JPY continued lower, breaking down through 158.20 support and reached as low as 157.34.
A stronger Yen overall has seen the pair lower, with USD/JPY printing a low of 98.51, losing grip of the 99.00 handle. GBP/USD is also lower, popping below 1.6000. Both pairs are in a range without a break out one way of the other and until such time, the GBP/JPY cross may find strong support here on a quiet calendar for the pair. For Sterling, research teams at RBS said it “ the dovish forward guidance tweak came at a rather inopportune time as it coincided with an abrupt turn in the data. This has clearly emboldened MPC hawks to cast aspersions on the BoE's 'no hikes until 2016”. The Yen on the other hand has become a funding currency and while the pair is considerably lower, much will depend upon whether USD/JPY can regain territory back into the 0.9900 mark on that basis.
GBP/JPY levels
The 20 DMA is 156.40, the 50 DMA is 153.55 and the 200 DMA is 148.70. RSI (14) reads 63.95. Supports are ascending from 157.00, 157.35. Spot is currently 157.70 ahead of 158.00, 158.80/159.00 resistances. There after comes159.70, 160.00, 160.40 and 161.40
A stronger Yen overall has seen the pair lower, with USD/JPY printing a low of 98.51, losing grip of the 99.00 handle. GBP/USD is also lower, popping below 1.6000. Both pairs are in a range without a break out one way of the other and until such time, the GBP/JPY cross may find strong support here on a quiet calendar for the pair. For Sterling, research teams at RBS said it “ the dovish forward guidance tweak came at a rather inopportune time as it coincided with an abrupt turn in the data. This has clearly emboldened MPC hawks to cast aspersions on the BoE's 'no hikes until 2016”. The Yen on the other hand has become a funding currency and while the pair is considerably lower, much will depend upon whether USD/JPY can regain territory back into the 0.9900 mark on that basis.
GBP/JPY levels
The 20 DMA is 156.40, the 50 DMA is 153.55 and the 200 DMA is 148.70. RSI (14) reads 63.95. Supports are ascending from 157.00, 157.35. Spot is currently 157.70 ahead of 158.00, 158.80/159.00 resistances. There after comes159.70, 160.00, 160.40 and 161.40