15 Oct 2013
GBP/JPY rebounding from lows for 157.00
FXstreet.com (London) - GBP/JPY has been climbing from the lows of 156.85 with risk sentiment on the turn.
It would appear the markets now feel comfortable with an imminent resolution to the US political situation, as the tail risk gets priced out. Attentions now turn to the details of the resolution and just how far down the road the ‘’can’’ can be kicked and how investors deal with the subsequent release of US data in the coming weeks. Beyond this the focus once again shifts towards the Fed and of course Yellen and continuation of QE/Tapering. From the calendar, for GBP, Research teams at TD Securities said CPI was a little stronger than expected at 2.7% Y/Y in Sept (mkt 2.6%), unchanged from August...”the focus will be on the unemployment rate, where analysts are split for tomorrow’s reading between looking for unchanged at 7.7% or another notch lower at 7.6%”.
GBP/JPY Levels
The 20 DMA is 157.65, the 50 DMA is 155.15 and the 200 DMA is 150.00. RSI (14) reads 42.55. supports are ascending from 155.85, 156.45 and 157.10. Spot is currently 156.99 while resistances are 157.55, 157.85, 158.85 and 159.40.
It would appear the markets now feel comfortable with an imminent resolution to the US political situation, as the tail risk gets priced out. Attentions now turn to the details of the resolution and just how far down the road the ‘’can’’ can be kicked and how investors deal with the subsequent release of US data in the coming weeks. Beyond this the focus once again shifts towards the Fed and of course Yellen and continuation of QE/Tapering. From the calendar, for GBP, Research teams at TD Securities said CPI was a little stronger than expected at 2.7% Y/Y in Sept (mkt 2.6%), unchanged from August...”the focus will be on the unemployment rate, where analysts are split for tomorrow’s reading between looking for unchanged at 7.7% or another notch lower at 7.6%”.
GBP/JPY Levels
The 20 DMA is 157.65, the 50 DMA is 155.15 and the 200 DMA is 150.00. RSI (14) reads 42.55. supports are ascending from 155.85, 156.45 and 157.10. Spot is currently 156.99 while resistances are 157.55, 157.85, 158.85 and 159.40.