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20 Sep 2013
GBP/JPY is trading downwards but does not give up 159.00
FXstreet.com (Athens)- The GBP/JPY is moving downwards since the early opening Asian trading session but last couple of hours regains uptrend momentum.
The GBP/JPY will try to retest 159.50 level; BoJ Kuroda speaks at Kisaragi-kai
Generally the pair is consolidating over the 159.20 area. Yesterday the pair managed to broke to a new high on 10-Sep, retested the break-out and extended. Kuroda didn’t say much new things to his speech. He mentioned that ““Easing will keep downward pressure on Yields”, “Rising inflation pressures the sovereign creditworthiness in emerging Asia”, as well as “Achieving fiscal health is essential for the economy.” What’s more, he added that “The recovery of the economy is expected to continue at a moderate pace.”
Technical Outlook on GBP/JPY
Generally speaking , the rebound in the pair may well have been led by the risk positive mood of the market and its preparedness to use the JPY as a funding currency for long positions mostly in emerging markets. The clue in the initial aftermath of a more dovish Fed, is that the weak Japanese trend seems to survive post the super dovish Fed tilt. mmediate support to the downside for GBP/JPY lies at recent session lows 159.11, followed by Sept 11 highs at 158.64, and Tuesday's highs at 158.15. To the upside, closest resistance shows at recent session highs at 159.69, followed by yesterday's fresh 4-year highs at 160.07, and Nov 2008 highs at 161.69.
The GBP/JPY will try to retest 159.50 level; BoJ Kuroda speaks at Kisaragi-kai
Generally the pair is consolidating over the 159.20 area. Yesterday the pair managed to broke to a new high on 10-Sep, retested the break-out and extended. Kuroda didn’t say much new things to his speech. He mentioned that ““Easing will keep downward pressure on Yields”, “Rising inflation pressures the sovereign creditworthiness in emerging Asia”, as well as “Achieving fiscal health is essential for the economy.” What’s more, he added that “The recovery of the economy is expected to continue at a moderate pace.”
Technical Outlook on GBP/JPY
Generally speaking , the rebound in the pair may well have been led by the risk positive mood of the market and its preparedness to use the JPY as a funding currency for long positions mostly in emerging markets. The clue in the initial aftermath of a more dovish Fed, is that the weak Japanese trend seems to survive post the super dovish Fed tilt. mmediate support to the downside for GBP/JPY lies at recent session lows 159.11, followed by Sept 11 highs at 158.64, and Tuesday's highs at 158.15. To the upside, closest resistance shows at recent session highs at 159.69, followed by yesterday's fresh 4-year highs at 160.07, and Nov 2008 highs at 161.69.