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29 Jul 2015
GBP/JPY stable for now below key breakout level
FXStreet (Guatemala) - GBP/JPY is trading at 193.60 with a high of 194.18 and low of 192.56.
GBP/JPY has given back some of the gains as it heads in to a tough resistance area through the bearish gap of end of June business when the 'Greek risk-off flows" went in to safer havens favouring the Yen at the time over other such safer haven currencies such as sterling, CHF or the US dollar.
However, with the Greek saga is heading towards a positive outcome for global financial markets, for now, so the Yen has eased up, the pound has rallied and markets have shifted back to Central Bank watch. Today, we have the FOMC which will be the main event for the week.
Trade the Fed FOMC meeting with Bednarik and Carrillo - Live Coverage
The BoE has been tipped by some economists recently to hike rates by the end of the year/2016. Analysts at Danske Bank have even suggested as soon as November. With such sentiment in the market, the pound has staged a 9 cent recovery vs the Yen this month alone, recouping approx 90% of the downtrend in June's sell off. Last week was a little touch and go and mostly better offered until demand rescued the recovery from falling through the 191 handle. Bids took the pair up to current levels between here and 194.16. Today, however, with end of month squaring and profit taking, the pound took a hit on the London fix. The greenback kept its form against the Yen and leaves the cross relatively stable at the mid point of 193.
Meanwhile, from today's headlines, International Monetary Fund Chief Christine Lagarde said on Wednesday that global growth is “tepid” and recovery remains fragile with downside risks on the horizon. These global risks should keep the Yen under demand. As for Japan, Lagarde commented that the country is seeing positive signs of inflation and “Abenomics is beginning to deliver”.
GBP/JPY overbought just below key resistance
Technically, the cross is heading to overbought levels with RSI approaching 70 and with 193.30 on the 4hr as the pivotal point to watch for on the downside. 194.58 comes as R3 for a break out potential on continued Sterling strength while it is at its highest levels since June the 30th.
GBP/JPY has given back some of the gains as it heads in to a tough resistance area through the bearish gap of end of June business when the 'Greek risk-off flows" went in to safer havens favouring the Yen at the time over other such safer haven currencies such as sterling, CHF or the US dollar.
However, with the Greek saga is heading towards a positive outcome for global financial markets, for now, so the Yen has eased up, the pound has rallied and markets have shifted back to Central Bank watch. Today, we have the FOMC which will be the main event for the week.
Trade the Fed FOMC meeting with Bednarik and Carrillo - Live Coverage
The BoE has been tipped by some economists recently to hike rates by the end of the year/2016. Analysts at Danske Bank have even suggested as soon as November. With such sentiment in the market, the pound has staged a 9 cent recovery vs the Yen this month alone, recouping approx 90% of the downtrend in June's sell off. Last week was a little touch and go and mostly better offered until demand rescued the recovery from falling through the 191 handle. Bids took the pair up to current levels between here and 194.16. Today, however, with end of month squaring and profit taking, the pound took a hit on the London fix. The greenback kept its form against the Yen and leaves the cross relatively stable at the mid point of 193.
Meanwhile, from today's headlines, International Monetary Fund Chief Christine Lagarde said on Wednesday that global growth is “tepid” and recovery remains fragile with downside risks on the horizon. These global risks should keep the Yen under demand. As for Japan, Lagarde commented that the country is seeing positive signs of inflation and “Abenomics is beginning to deliver”.
GBP/JPY overbought just below key resistance
Technically, the cross is heading to overbought levels with RSI approaching 70 and with 193.30 on the 4hr as the pivotal point to watch for on the downside. 194.58 comes as R3 for a break out potential on continued Sterling strength while it is at its highest levels since June the 30th.