26 Sep 2013
GBP/JPY mixed on Abe policy rumors
FXstreet.com (London) - GBP/JPY has been a roller coaster, marking a high of 159.29 and a low of 158.01.
Besides a slightly disappointing GDP number coming from the UK of 1.3% vs 1.5%, research teams at TD Securities explained that fresh reports that the Abe government is considering a corporate tax cut in the near future to help balance the much telegraphed sales tax increase on the horizon saw the JPY sell off sharply across the board early in the overnight session. “The Nikkei was boosted by over 1% on the news, and the index’s strong, positive correlation with USD/JPY is likely a strong force behind the pressure on the currency. But the broadly consolidative tone of markets has seen most of that move retrace in recent hours. Reports of new government policies have grown very common now and we may need to see a hard announcement before we see USD/JPY levels outside of the range of the past two months (97.50/100)”.
GBP/JPY Levels
The 20 DMA is 157.00, the 50 DMA is 153.80 and the 200 DMA is 148.95. RSI (14) reads 51.10. Supports are ascending from 156.65, 157.00, 157.35, and 157.95. Spot is currently 158.56 while resistances are 159.10, 159.70, 160.00, 160.40 and 161.40.
Besides a slightly disappointing GDP number coming from the UK of 1.3% vs 1.5%, research teams at TD Securities explained that fresh reports that the Abe government is considering a corporate tax cut in the near future to help balance the much telegraphed sales tax increase on the horizon saw the JPY sell off sharply across the board early in the overnight session. “The Nikkei was boosted by over 1% on the news, and the index’s strong, positive correlation with USD/JPY is likely a strong force behind the pressure on the currency. But the broadly consolidative tone of markets has seen most of that move retrace in recent hours. Reports of new government policies have grown very common now and we may need to see a hard announcement before we see USD/JPY levels outside of the range of the past two months (97.50/100)”.
GBP/JPY Levels
The 20 DMA is 157.00, the 50 DMA is 153.80 and the 200 DMA is 148.95. RSI (14) reads 51.10. Supports are ascending from 156.65, 157.00, 157.35, and 157.95. Spot is currently 158.56 while resistances are 159.10, 159.70, 160.00, 160.40 and 161.40.