7 Nov 2013
GBP/JPY on the offer, holding 158.20 level
FXstreet.com (London) - GBP/JPY fell sharply in a market that has witnessed the ECB surprise with an aggressive move that took the JPY higher across the board.
GBP/JPY was already offered on the BoE but the pair collapsed while playing catch up with EUR/JPY on the ECB. Looking ahead, markets have the Inflation Report this month from the UK. RBS research team said, “We expect the MPC's November Inflation Report forecasts to show a modest upward revision to GDP (the BoE is already a little above consensus) and to bring forward the point at which the unemployment rate falls to 7% (probably by two quarters to Q1 2016). In essence, a moderately 'hawkish' BoE shift in forecasts and the implicit policy guidance, but probably counterbalanced to some extent by more dovish/cautious rhetoric”.
GBP/JPY Levels
The 20 DMA is 157.75, the 50 DMA is 157.25 and the 200 DMA is 151.30. RSI (14) reads 61.21. Supports are ascending from 157.35, 157.65 and 157.85. Spot is 158.55 while resistances are 158.65, 159.55, 160.00, 160.40 and 161.40.
GBP/JPY was already offered on the BoE but the pair collapsed while playing catch up with EUR/JPY on the ECB. Looking ahead, markets have the Inflation Report this month from the UK. RBS research team said, “We expect the MPC's November Inflation Report forecasts to show a modest upward revision to GDP (the BoE is already a little above consensus) and to bring forward the point at which the unemployment rate falls to 7% (probably by two quarters to Q1 2016). In essence, a moderately 'hawkish' BoE shift in forecasts and the implicit policy guidance, but probably counterbalanced to some extent by more dovish/cautious rhetoric”.
GBP/JPY Levels
The 20 DMA is 157.75, the 50 DMA is 157.25 and the 200 DMA is 151.30. RSI (14) reads 61.21. Supports are ascending from 157.35, 157.65 and 157.85. Spot is 158.55 while resistances are 158.65, 159.55, 160.00, 160.40 and 161.40.