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20 May 2014
GBP/JPY grinding higher
FXStreet (Guatemala) - GBP/JPY is trading at 170.56, down -0.04% on the day, having posted a daily high at 170.98 and low at 170.37.
GBP/JPY is working with a tight range again having calmed since the rally towards 171.00 and having bottomed out on the lows into a slow grind to the upside. Strategists at RBS explained that similar to the BoE inflation report, the MPC minutes may leave those expecting an outright hawkish shift disappointed. “We anticipate the policy stance was approved with a unanimous vote, and because the changes in both the fan charts and the central projections were little changed in the Inflation Report, we don't see much scope for a sharp change in policy stance by even the most hawkish members to be revealed in the May meeting minutes. Retail sales are also released in the UK and while we would caution that these numbers on a monthly basis tend to be volatile, our Economics team anticipates a 0.3% m/m rebound in sales growth in April. Seasonality related to the timing of the Easter holiday may boost sales, which was likely reflected in the improvements in both the BRC and CBI retail surveys. Strong data paired with a dovish BoE may keep the status quo for GBP in place”.
GBP/JPY Levels
Current price is 170.60, with resistance ahead at 170.62 (Hourly 100 SMA), 170.66 (Daily Open), 170.74 (Daily 100 SMA), 170.98 (Daily High) and 171.00 (Yesterday's High). Next support to the downside can be found at 170.58 (Hourly 20 EMA), 170.57 (Monthly Low), 170.57 (Weekly Low), 170.54 (Daily Classic PP) and 170.37 (Daily Low).
GBP/JPY is working with a tight range again having calmed since the rally towards 171.00 and having bottomed out on the lows into a slow grind to the upside. Strategists at RBS explained that similar to the BoE inflation report, the MPC minutes may leave those expecting an outright hawkish shift disappointed. “We anticipate the policy stance was approved with a unanimous vote, and because the changes in both the fan charts and the central projections were little changed in the Inflation Report, we don't see much scope for a sharp change in policy stance by even the most hawkish members to be revealed in the May meeting minutes. Retail sales are also released in the UK and while we would caution that these numbers on a monthly basis tend to be volatile, our Economics team anticipates a 0.3% m/m rebound in sales growth in April. Seasonality related to the timing of the Easter holiday may boost sales, which was likely reflected in the improvements in both the BRC and CBI retail surveys. Strong data paired with a dovish BoE may keep the status quo for GBP in place”.
GBP/JPY Levels
Current price is 170.60, with resistance ahead at 170.62 (Hourly 100 SMA), 170.66 (Daily Open), 170.74 (Daily 100 SMA), 170.98 (Daily High) and 171.00 (Yesterday's High). Next support to the downside can be found at 170.58 (Hourly 20 EMA), 170.57 (Monthly Low), 170.57 (Weekly Low), 170.54 (Daily Classic PP) and 170.37 (Daily Low).