9 May 2014
GBP/JPY’s outlook next week
FXStreet (Guatemala) - GBP/JPY is trading at 171.41, down -0.41% on the day, having posted a daily high at 172.32 and low at 171.22.
For Sterling, next up is the Inflation Report. Analysts at RBS explained that they expect a largely unchanged stance from the BoE in the Inflation Report. “This would be a disappointment to those romancing the prospects for the BoE to begin to normalize monetary policy well ahead of the Fed, ECB, and BoJ”. On the domestic data front for Japan, focus has shifted to second quarter releases which include the preliminary impacts of the consumption tax increase. “As second quarter data are showing signs of slowdown, even a modest disappointment in first quarter momentum could reduce medium-term growth expectations and put pressure on the BoJ's outlook. BoJ Governor Kuroda is scheduled to speak not long after the GDP numbers are released, though Governor Kuroda will likely reiterate that the BoJ's view, as outlined in the outlook report, is for a fairly resilient pace of consumption despite the consumption tax hike”.
GBP/JPY Levels
With spot trading at 171.43, we can see next resistance ahead at 171.70 (Daily Classic S1), 171.80 (Hourly 20 EMA), 171.86 (Yesterday's Low), 172.04 (Daily 20 SMA) and 172.13 (Weekly Low). Support below can be found at 171.27 (Daily Classic S2), 171.25 (Weekly Classic S1), 171.22 (Daily Low), 170.76 (Daily 100 SMA) and 170.68 (Daily Classic S3).
For Sterling, next up is the Inflation Report. Analysts at RBS explained that they expect a largely unchanged stance from the BoE in the Inflation Report. “This would be a disappointment to those romancing the prospects for the BoE to begin to normalize monetary policy well ahead of the Fed, ECB, and BoJ”. On the domestic data front for Japan, focus has shifted to second quarter releases which include the preliminary impacts of the consumption tax increase. “As second quarter data are showing signs of slowdown, even a modest disappointment in first quarter momentum could reduce medium-term growth expectations and put pressure on the BoJ's outlook. BoJ Governor Kuroda is scheduled to speak not long after the GDP numbers are released, though Governor Kuroda will likely reiterate that the BoJ's view, as outlined in the outlook report, is for a fairly resilient pace of consumption despite the consumption tax hike”.
GBP/JPY Levels
With spot trading at 171.43, we can see next resistance ahead at 171.70 (Daily Classic S1), 171.80 (Hourly 20 EMA), 171.86 (Yesterday's Low), 172.04 (Daily 20 SMA) and 172.13 (Weekly Low). Support below can be found at 171.27 (Daily Classic S2), 171.25 (Weekly Classic S1), 171.22 (Daily Low), 170.76 (Daily 100 SMA) and 170.68 (Daily Classic S3).