10 Dec 2013
GBP/JPY dropping from multi year highs
FXstreet.com (London) - GBP/JPY was trading at multi year highs but has dropped a big figure from 170.00 to 169.00.
Japan reported October machine tool orders overnight. Orders rose 15.4% y/y after rising 8.4% in September. We will have Japan reporting machine orders tonight and the consensus is at 15% y/y vs. 11.4% y/y in September. Meanwhile, BoE Governor Carney tried to emphasise the low for longer message in his speech yesterday, but the GBP has nevertheless continued to outperform. Strategists at TD Securities noted that solid—albeit on-consensus—UK industrial production figures and an improvement in the trade balance for October had also helped to lift GBP/USD in Europe. “The pair reached a marginal new cycle high, and on the charts there isn’t much resistance to prevent a move to 1.66/67”. They also noted that USD/JPY had continued to inch higher towards the May 22 high near 103.75 with Yen weakness broad based, GBY/JPY was trading at multi year highs and has been subject to profit taking since.
GBP/JPY Levels
The 20 DMA is 164.50, the 50 DMA is 160.30 and the 200 DMA is 153.60. RSI (14) reads 77.08. Supports are ascending from 167.85, 168.15 and 168.65. Spot is 169.00 with resistances at 170.00, 170.45, 173.00, 173.65 and 175.60.
Japan reported October machine tool orders overnight. Orders rose 15.4% y/y after rising 8.4% in September. We will have Japan reporting machine orders tonight and the consensus is at 15% y/y vs. 11.4% y/y in September. Meanwhile, BoE Governor Carney tried to emphasise the low for longer message in his speech yesterday, but the GBP has nevertheless continued to outperform. Strategists at TD Securities noted that solid—albeit on-consensus—UK industrial production figures and an improvement in the trade balance for October had also helped to lift GBP/USD in Europe. “The pair reached a marginal new cycle high, and on the charts there isn’t much resistance to prevent a move to 1.66/67”. They also noted that USD/JPY had continued to inch higher towards the May 22 high near 103.75 with Yen weakness broad based, GBY/JPY was trading at multi year highs and has been subject to profit taking since.
GBP/JPY Levels
The 20 DMA is 164.50, the 50 DMA is 160.30 and the 200 DMA is 153.60. RSI (14) reads 77.08. Supports are ascending from 167.85, 168.15 and 168.65. Spot is 169.00 with resistances at 170.00, 170.45, 173.00, 173.65 and 175.60.