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16 Dec 2013
GBP/JPY remaining bullish?
FXstreet.com (London) - GBP/JPY, after meeting yearly highs now remains on the offer after a small attempt from the 167.70 area through the handle. The pair had reached a high of 168.44 where the cross met further supply back down through the 168 handle. While there has been a set back, the pair is still overall bid on the monthly charts with a strong bullish bias.
Strategist, Lee Hardman at the Bank of Tokyo-Mitsubishi UFJ, Ltd, said the
Yen has strengthened modestly in the Asian trading session with USD/JPY
falling back below the 103.00-level. This has fulled the cross lower with sterling also struggling at critical levels in 1.6350. Hardman continued to say that the yen is deriving support from more risk-averse trading conditions overnight with Asian equity markets and commodity prices modestly lower ahead of the upcoming FOMC meeting on the 18th December. Meanwhile, as strategists at RBS noted, “BoE Governor Carney's comments last week about using measures other than the base rate to tighten policy are a small GBP negative. It's also possible that this week's MPC minutes reveal toughened Forward Guidance by committee expressing more concern about GBP's continued appreciation”.
UK data and the GBP in the spot light
The week ahead is going to be rich with UK data. We have the unemployment, CPI and retail sales all released this week. Strategists at RBS said, “Unemployment is seen stabilising at 7.6% (in line with the consensus), but with risks skewed towards a fall to 7.5%. An unexpected fall would put further pressure on the MPC's dovish forward guidance. While Q3:13 GDP should be unrevised, accompanying current account data may show a further worrying deterioration. A widening in the trade deficit is expected to be a developing theme in 2014. Risks to retail sales are also skewed to the downside on unfavourable weather/seasonals. With real incomes still under pressure, the health of consumer spending looks set to remain a key theatre for the UK recovery story”.
GBP/JPY Levels
The 20 DMA is 166.20, the 50 DMA is 161.20 and the 200 DMA is 154.10. RSI (14) reads 46.91. Supports are ascending from 165.90, 166.60, 166.85, 167.25, 167.45. Spot is 167.90 while resistances are 168.40, 169.35, 169.80 and 170.05
Strategist, Lee Hardman at the Bank of Tokyo-Mitsubishi UFJ, Ltd, said the
Yen has strengthened modestly in the Asian trading session with USD/JPY
falling back below the 103.00-level. This has fulled the cross lower with sterling also struggling at critical levels in 1.6350. Hardman continued to say that the yen is deriving support from more risk-averse trading conditions overnight with Asian equity markets and commodity prices modestly lower ahead of the upcoming FOMC meeting on the 18th December. Meanwhile, as strategists at RBS noted, “BoE Governor Carney's comments last week about using measures other than the base rate to tighten policy are a small GBP negative. It's also possible that this week's MPC minutes reveal toughened Forward Guidance by committee expressing more concern about GBP's continued appreciation”.
UK data and the GBP in the spot light
The week ahead is going to be rich with UK data. We have the unemployment, CPI and retail sales all released this week. Strategists at RBS said, “Unemployment is seen stabilising at 7.6% (in line with the consensus), but with risks skewed towards a fall to 7.5%. An unexpected fall would put further pressure on the MPC's dovish forward guidance. While Q3:13 GDP should be unrevised, accompanying current account data may show a further worrying deterioration. A widening in the trade deficit is expected to be a developing theme in 2014. Risks to retail sales are also skewed to the downside on unfavourable weather/seasonals. With real incomes still under pressure, the health of consumer spending looks set to remain a key theatre for the UK recovery story”.
GBP/JPY Levels
The 20 DMA is 166.20, the 50 DMA is 161.20 and the 200 DMA is 154.10. RSI (14) reads 46.91. Supports are ascending from 165.90, 166.60, 166.85, 167.25, 167.45. Spot is 167.90 while resistances are 168.40, 169.35, 169.80 and 170.05