12 Feb 2014
GBP/JPY almost there; psychological 170 handle
FXStreet (Guatemala) - GBP/JPY has been a nice rally on the 169 handle up to test the barrier which is the 169.80 area. Can the pair to claim the psychological 170 handle?
Besides Yellen, the theme of the markets in Europe and, to some extent, NY today were all about Sterling which is nicely bid with analysts at major banks shifting on their expectations of a hike to come in as soon as Q2 2015. “On balance, the risks around our forecast for the first Bank Rate hike in Q3 2015 have shifted towards an earlier rise (ie, Q2 2015)”, explained analysts at The Royal Bank of Scotland. This coupled with a better bid USD/JPY, 170.00 has been 14 pips away from the high. There is now not much left data wise but on the charts, there isn’t a great deal of resistance ahead of 171.45 if the trend line resistance above 174.00 is a measurement to go by.
GBP/JPY Levels
The 20 DMA is 169.20, the 50 DMA is 170.00 and the 200 DMA is 158.85. RSI (14) reads 51.78. Supports are ascending from 165.80, 166.15, 166.95, 167.10, and 169.30. Spot is 169.66 with key resistances at 171.45 and 172.30.
Besides Yellen, the theme of the markets in Europe and, to some extent, NY today were all about Sterling which is nicely bid with analysts at major banks shifting on their expectations of a hike to come in as soon as Q2 2015. “On balance, the risks around our forecast for the first Bank Rate hike in Q3 2015 have shifted towards an earlier rise (ie, Q2 2015)”, explained analysts at The Royal Bank of Scotland. This coupled with a better bid USD/JPY, 170.00 has been 14 pips away from the high. There is now not much left data wise but on the charts, there isn’t a great deal of resistance ahead of 171.45 if the trend line resistance above 174.00 is a measurement to go by.
GBP/JPY Levels
The 20 DMA is 169.20, the 50 DMA is 170.00 and the 200 DMA is 158.85. RSI (14) reads 51.78. Supports are ascending from 165.80, 166.15, 166.95, 167.10, and 169.30. Spot is 169.66 with key resistances at 171.45 and 172.30.