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11 Mar 2014
GBP/JPY attempting 172 handle
FXStreet (Guatemala) - GBP/JPY had slid along with cable reaching a low of 171.45 but has since managed to an attempt on the 172 handle again into the Asian session.
Sean Callow, analyst at Westpac Banking Corporation ABN noted that Sterling was undermined by BoE deputy governor Bean who said further GBP TWI appreciation would result in monetary policy being left “lower for longer”. Meanwhile, RBS analysts explained the Bank of Japan decision overnight is the final BoJ policy announcement before the consumption tax hike comes into effect in April. “As a result, we expect the BoJ to remain largely in wait-and-see territory as it may prefer to assess the economic impact of the impending sales tax hike before acting. No action from the BoJ is the consensus but may be a modest JPY positive”
GBP/JPY Levels
The 20 DMA is 170.40, the 50 DMA is 170.45, The 200 DMA is 160.25. RSI (14) reads 51.50. Supports are ascending from 170.15, 171.00 and 171.50. Spot is 171.92 while resistances are 172.40, 172.80, 173.65 and 174.85.
Sean Callow, analyst at Westpac Banking Corporation ABN noted that Sterling was undermined by BoE deputy governor Bean who said further GBP TWI appreciation would result in monetary policy being left “lower for longer”. Meanwhile, RBS analysts explained the Bank of Japan decision overnight is the final BoJ policy announcement before the consumption tax hike comes into effect in April. “As a result, we expect the BoJ to remain largely in wait-and-see territory as it may prefer to assess the economic impact of the impending sales tax hike before acting. No action from the BoJ is the consensus but may be a modest JPY positive”
GBP/JPY Levels
The 20 DMA is 170.40, the 50 DMA is 170.45, The 200 DMA is 160.25. RSI (14) reads 51.50. Supports are ascending from 170.15, 171.00 and 171.50. Spot is 171.92 while resistances are 172.40, 172.80, 173.65 and 174.85.