9 Jan 2014
GBP/JPY goes higher
FXstreet.com (Moscow) - GBP/JPY keeps the upside potential after a good run yesterday; the cross is trading close to 172.60 after opening at 172.38.
GBP/JPY and the Bank of England
It seems that everyone likes the British pound nowadays as the currency tends to grow across the board. GBP/JPY is no exception: the cross moves higher this morning. GBP/JPY traders is waiting for the Bank of England monetary policy decision. The BOE is believed to be the first to raise rates among other major Central Banks. In the long run this idea gives the GBP a boost against Yen where the Bank of Japan stands ready to extend stimulus. Though today’s meeting may prove to be a non-event as no change of policy or is expected from Bank of England. If the MPC has no surprises in store for us, GBP/JPY is likely to trade within newly established range for a while. The immediate resistance comes at yesterday’s high of 172.80. Once it is broken the technical factors will come into play and the cross may accelerate growth to 173.00 and above. On the downside the intraday movements will most likely be limited by 172.00 support level.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 172.22, with support below at 171.58, 170.81 and 170.16, with resistance above at 172.99, 172.63 and 174.40. Hourly Moving Averages are mostly bullish, with the 200SMA at 172.71 and the daily 20EMA at 170.90. Hourly RSI is neutral at 61.31.
GBP/JPY and the Bank of England
It seems that everyone likes the British pound nowadays as the currency tends to grow across the board. GBP/JPY is no exception: the cross moves higher this morning. GBP/JPY traders is waiting for the Bank of England monetary policy decision. The BOE is believed to be the first to raise rates among other major Central Banks. In the long run this idea gives the GBP a boost against Yen where the Bank of Japan stands ready to extend stimulus. Though today’s meeting may prove to be a non-event as no change of policy or is expected from Bank of England. If the MPC has no surprises in store for us, GBP/JPY is likely to trade within newly established range for a while. The immediate resistance comes at yesterday’s high of 172.80. Once it is broken the technical factors will come into play and the cross may accelerate growth to 173.00 and above. On the downside the intraday movements will most likely be limited by 172.00 support level.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 172.22, with support below at 171.58, 170.81 and 170.16, with resistance above at 172.99, 172.63 and 174.40. Hourly Moving Averages are mostly bullish, with the 200SMA at 172.71 and the daily 20EMA at 170.90. Hourly RSI is neutral at 61.31.