20 Jan 2014
GBP/JPY battling with the 171 handle
FXstreet.com (Guatemala) - GBP/JPY reached a high of 171.50 before scaling back the best part of a big figure again to a low of 170.67 and a bounce back into 171 territory see’s the pair currently trading around the figure.
Lee Hardman, The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the foreign exchange market has remained relatively stable during the Asian trading session with the yen strengthening alongside modest declines in Asian equity indices. The week ahead brings Sterling into focus and he added, “The pound has regained upward momentum in the near-term following the release of the stronger than expected UK retail sales report for December. The report revealed that the volume of retail sales excluding fuel store sales expanded robustly by 2.8%M/M in December lifting the annual rate of growth to 6.1%, which was the strongest reading since September 2004…. The release of the latest UK employment report will be in focus in the week ahead and is expected to reveal that employment growth remained robust lowering the unemployment rate even closer to 7.0%, which looks likely to be hit in the first half of this year…”The release of the latest MPC minutes may shed light on whether the faster than expected decline in the unemployment rate is prompting the BoE to consider amending their forward guidance which could help to dampen rate hike expectations ahead. We continue to remain sceptical that the BoE can credibly lower then unemployment threshold so soon after setting it at 7.0%, which may mean it reverts to back to placing greater emphasis again on its inflation projections as a signal for monetary policy direction”.
GBP/JPY Levels
The 20 DMA is 171.80, the 50 DMA is 168.10 and the 200 DMA is 157.35. RSI (14) reads 46.58. Supports are ascending from 168.35, 169.20, 169.75. Spot is 170.89 while resistances are 170.10, 170.50, 171.40, 171.85 172.20 and 173.15.
Lee Hardman, The Bank of Tokyo-Mitsubishi UFJ, Ltd explained that the foreign exchange market has remained relatively stable during the Asian trading session with the yen strengthening alongside modest declines in Asian equity indices. The week ahead brings Sterling into focus and he added, “The pound has regained upward momentum in the near-term following the release of the stronger than expected UK retail sales report for December. The report revealed that the volume of retail sales excluding fuel store sales expanded robustly by 2.8%M/M in December lifting the annual rate of growth to 6.1%, which was the strongest reading since September 2004…. The release of the latest UK employment report will be in focus in the week ahead and is expected to reveal that employment growth remained robust lowering the unemployment rate even closer to 7.0%, which looks likely to be hit in the first half of this year…”The release of the latest MPC minutes may shed light on whether the faster than expected decline in the unemployment rate is prompting the BoE to consider amending their forward guidance which could help to dampen rate hike expectations ahead. We continue to remain sceptical that the BoE can credibly lower then unemployment threshold so soon after setting it at 7.0%, which may mean it reverts to back to placing greater emphasis again on its inflation projections as a signal for monetary policy direction”.
GBP/JPY Levels
The 20 DMA is 171.80, the 50 DMA is 168.10 and the 200 DMA is 157.35. RSI (14) reads 46.58. Supports are ascending from 168.35, 169.20, 169.75. Spot is 170.89 while resistances are 170.10, 170.50, 171.40, 171.85 172.20 and 173.15.