12 Nov 2013
GBP/JPY grinds higher as Nikkei soars
FXstreet.com (Athens) – The GBP/JPY is heading north since the kick off of the Asian trading session mostly due to soaring Nikkei.
GBP/JPY capped by 159.00; the cross seems to have an uptrend momentum so a break-out can’t be excluded
The GBP/JPY has been steadily moving to the upper level since the early start of the Wellington trading session, ahead of the UK CPI later on today as well as ahead of the Third’s China Plenum result. Market participants might attribute to a more or less extent the uptrend momentum of the cross, to the soaring Nikkei (currently up by 1.69%), as well as to the growing optimism which surrounds the outcome of the China’s 3rd Plenum result. Japanese PM Abe mentioned earlier through news wires that “Agreed with US Treas Sec Lew to finalize Trans-Pacific Partnership talks this year,” while he “declined to comment on whether he discussed FX moves with US' Lew. Also repeated of Oct US debt problems undesirable."
Technical Aspects on the GBP/JPY
The daily momentum of the cross is bullish, thus it might be considered that the 2009 high of 163.00 is still on ‘play’. The cross should overcome the barrier of the 159.44 (38.2% Fibonnaci exp), in order to move towards the 160.90 (50% Fibonacci exp). It is notweworthy to mention, that the pair managed to make a decent daily close above the May high at 156.75 (where also the 50-daily MA is laying) and that adds additional uptrend momentum to the cross. Last but not least, market participants should be aware of the support at 157.94 area (August trend line), above which prices seem to consolidate higher.
GBP/JPY capped by 159.00; the cross seems to have an uptrend momentum so a break-out can’t be excluded
The GBP/JPY has been steadily moving to the upper level since the early start of the Wellington trading session, ahead of the UK CPI later on today as well as ahead of the Third’s China Plenum result. Market participants might attribute to a more or less extent the uptrend momentum of the cross, to the soaring Nikkei (currently up by 1.69%), as well as to the growing optimism which surrounds the outcome of the China’s 3rd Plenum result. Japanese PM Abe mentioned earlier through news wires that “Agreed with US Treas Sec Lew to finalize Trans-Pacific Partnership talks this year,” while he “declined to comment on whether he discussed FX moves with US' Lew. Also repeated of Oct US debt problems undesirable."
Technical Aspects on the GBP/JPY
The daily momentum of the cross is bullish, thus it might be considered that the 2009 high of 163.00 is still on ‘play’. The cross should overcome the barrier of the 159.44 (38.2% Fibonnaci exp), in order to move towards the 160.90 (50% Fibonacci exp). It is notweworthy to mention, that the pair managed to make a decent daily close above the May high at 156.75 (where also the 50-daily MA is laying) and that adds additional uptrend momentum to the cross. Last but not least, market participants should be aware of the support at 157.94 area (August trend line), above which prices seem to consolidate higher.