2 Jun 2014
GBP/JPY pausing on a claw back
FXStreet (Guatemala) - GBP/JPY is trading at 170.88, having posted a daily high at 171.00 and long way to go before matching last weeks open a cent higher.
GBP/JPY is pausing after trying to claw back some ground lost on last week’s business, which saw the JPY take the leaders board while markets continued to question the UK’s resilience. Meanwhile, for the UK this week, we have the PMIs in the foreground while there are politics in the background, as strategists at RBS pointed out. They explained that the Bank of England MPC decision is likely to be a non-starter again. “Aside from the PMIs, a lack of top tier data releases may leave GBP subject to developments abroad and discussions of longer-term issues that bubble beneath the surface”. In the mean time, they added that the political risks ahead of 2015 elections are beginning to take shape, and said the possible risks to the outlook from rising household imbalances is starting to catch the attention of policymakers.
GBP/JPY Levels
Current price is 170.88, with resistance ahead at 170.99 (Hourly 200 SMA), 171.00 (Daily High), 171.20 (Daily 20 SMA), 171.28 (Daily Classic R2) and 171.69 (Weekly High). Next support to the downside can be found at 170.88 (Daily Classic R1), 170.81 (Daily Open), 170.73 (Yesterday's High), 170.68 (Hourly 100 SMA) and 170.68 (Weekly Classic PP).
GBP/JPY is pausing after trying to claw back some ground lost on last week’s business, which saw the JPY take the leaders board while markets continued to question the UK’s resilience. Meanwhile, for the UK this week, we have the PMIs in the foreground while there are politics in the background, as strategists at RBS pointed out. They explained that the Bank of England MPC decision is likely to be a non-starter again. “Aside from the PMIs, a lack of top tier data releases may leave GBP subject to developments abroad and discussions of longer-term issues that bubble beneath the surface”. In the mean time, they added that the political risks ahead of 2015 elections are beginning to take shape, and said the possible risks to the outlook from rising household imbalances is starting to catch the attention of policymakers.
GBP/JPY Levels
Current price is 170.88, with resistance ahead at 170.99 (Hourly 200 SMA), 171.00 (Daily High), 171.20 (Daily 20 SMA), 171.28 (Daily Classic R2) and 171.69 (Weekly High). Next support to the downside can be found at 170.88 (Daily Classic R1), 170.81 (Daily Open), 170.73 (Yesterday's High), 170.68 (Hourly 100 SMA) and 170.68 (Weekly Classic PP).