5 Sep 2013
GBP/JPY confined in a tight range
FXstreet.com (Athens) - The GBP/JPY is trading slightly upwards after BoJ kept its monetary policy steady in line with expectations.
GBP/JPY trading nearly its daily opening level as BoJ’s rate decision didn’t catch traders off guard
The BoJ said that “BoJ sees Japanese economy recovering modestly, will continue monetary easing to reach 2% inflation goal.” And that “BoJ maintains 2% inflation target as a mid-term goal, while BoJ expects CPI to gradually improve, pace of recovery to continue to be moderate.” Elaborating on, the traders all over the globe haven’t taken aback on the fact that the BoJ would retain current monetary base target, i.e. 60-70 trillion Japanese Jen in annual increase. On the other side, we are ahead of the BoE meeting today and the sterling is outperforming across the board. Most of investors, consider that BoE will stick to its current policy. Furthermore, Standard practice is to not release a statement but Governor Carney has not stuck to this practice each meeting. Last but not least, while the BoJ’s ultimate actions to leverage an unprecedented stimulus program to end deflation leaded the pair strongly upwards the whole week, investors should take into deep consideration the Japanese currency sensitivity on news jitters.
Technical Outlook and Strategic bias on GBP/JPY
We are ahead of G-20 summit and it could stated that the upward movement of the pair, is “more a function of global sentiment and much as positioning in equities is still heavy with positioning leaving it with a poor risk reward. The longer term trend is clear with more easing to compensate the VAT tax hike.” At the time of writing the pair is trading at 155.72, down 0.07%. The FXstreet.com Trend Index shows the pair neutral in the 15-minutes timeframe chart. Daily pivot point support can be found at S3: 155.31 S2: 154.92 S1: 154.53 and resistance at R1:156.57 R2:156.95 R3:157.35, respectively.
GBP/JPY trading nearly its daily opening level as BoJ’s rate decision didn’t catch traders off guard
The BoJ said that “BoJ sees Japanese economy recovering modestly, will continue monetary easing to reach 2% inflation goal.” And that “BoJ maintains 2% inflation target as a mid-term goal, while BoJ expects CPI to gradually improve, pace of recovery to continue to be moderate.” Elaborating on, the traders all over the globe haven’t taken aback on the fact that the BoJ would retain current monetary base target, i.e. 60-70 trillion Japanese Jen in annual increase. On the other side, we are ahead of the BoE meeting today and the sterling is outperforming across the board. Most of investors, consider that BoE will stick to its current policy. Furthermore, Standard practice is to not release a statement but Governor Carney has not stuck to this practice each meeting. Last but not least, while the BoJ’s ultimate actions to leverage an unprecedented stimulus program to end deflation leaded the pair strongly upwards the whole week, investors should take into deep consideration the Japanese currency sensitivity on news jitters.
Technical Outlook and Strategic bias on GBP/JPY
We are ahead of G-20 summit and it could stated that the upward movement of the pair, is “more a function of global sentiment and much as positioning in equities is still heavy with positioning leaving it with a poor risk reward. The longer term trend is clear with more easing to compensate the VAT tax hike.” At the time of writing the pair is trading at 155.72, down 0.07%. The FXstreet.com Trend Index shows the pair neutral in the 15-minutes timeframe chart. Daily pivot point support can be found at S3: 155.31 S2: 154.92 S1: 154.53 and resistance at R1:156.57 R2:156.95 R3:157.35, respectively.