16 Oct 2013
GBP/JPY has dropped sharply, just knee jerk?
FXstreet.com (London) - GBP/JPY has found support ahead of 157.20 as the US dollar gets a boost, crippling sterling. But is this sharp move simply a knee jerk reaction?
The final deal in Washington boosted the USD and in the case of GBP, eroding gains post-employment data. This took the pair from just shy of the 158.00 region. Research teams at TD Securities explained that the UK labour market data on net was better than expected, though the all-important ILO unemployment rate for August came in unchanged and on consensus at 7.7%. Meanwhile, in USD/JPY, the levels on the topside to watch out for are 98.75 and 99.30 whilst a break below 97.75-80 should lead to momentum selling pressure in the pair.
GBP/JPY Levels
The 20 DMA is 157.60, the 50 DMA is 155.45 and the 200 DMA is 150.15. RSI (14) reads 44.59. Supports are ascending from 155.85, 156.45 and 156.85. Spot is 157.30 while resistances are 157.70, 158.85, 159.40 and 160.00.
The final deal in Washington boosted the USD and in the case of GBP, eroding gains post-employment data. This took the pair from just shy of the 158.00 region. Research teams at TD Securities explained that the UK labour market data on net was better than expected, though the all-important ILO unemployment rate for August came in unchanged and on consensus at 7.7%. Meanwhile, in USD/JPY, the levels on the topside to watch out for are 98.75 and 99.30 whilst a break below 97.75-80 should lead to momentum selling pressure in the pair.
GBP/JPY Levels
The 20 DMA is 157.60, the 50 DMA is 155.45 and the 200 DMA is 150.15. RSI (14) reads 44.59. Supports are ascending from 155.85, 156.45 and 156.85. Spot is 157.30 while resistances are 157.70, 158.85, 159.40 and 160.00.