3 Feb 2014
GBP/JPY stalled at 168.00 ahead of key risk events
FXstreet.com (Moscow) - GBP/JPY has moved above the resistance of 168.00 and reached the intraday high at 168.19 on the back of JPY downside correction across the board at the start of the week; now the cross is consolidating slightly above 168.00 as the bulls have lost their enthusiasm.
GBP/JPY weakened in unison with the rest JPY crosses as market participants rushed out of the risk assets to safe-heavens, such as Yen. According to the latest reports, inflation is growing in Japan, just as Abe planned, so lots of people are shifting their monetary policy expectations from more stimulus to more cautious approach. This is also the factor behind the strength of the Japanese currency across the board. UK economy is also in relatively good shape and today’s PMI data is likely to confirm the positive trend. To this extend GBP/JPY is better positioned then, let’s say, EUR/JPY. Should the cross manage to hold ground above 168.00, the upside correction will accelerate to 168.40/50 where the new selling interest is seen, while the key support level is 167.43 followed by 167.00-166.97.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 164.88, with support below at 167.08, 166.23 and 166.74, with resistance above at 169289, 170.63 and 171.48. Hourly Moving Averages are bearish, with the 200SMA at 170.48 and the daily 20EMA at 170.38. Hourly RSI is neutral at 43.
GBP/JPY weakened in unison with the rest JPY crosses as market participants rushed out of the risk assets to safe-heavens, such as Yen. According to the latest reports, inflation is growing in Japan, just as Abe planned, so lots of people are shifting their monetary policy expectations from more stimulus to more cautious approach. This is also the factor behind the strength of the Japanese currency across the board. UK economy is also in relatively good shape and today’s PMI data is likely to confirm the positive trend. To this extend GBP/JPY is better positioned then, let’s say, EUR/JPY. Should the cross manage to hold ground above 168.00, the upside correction will accelerate to 168.40/50 where the new selling interest is seen, while the key support level is 167.43 followed by 167.00-166.97.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 164.88, with support below at 167.08, 166.23 and 166.74, with resistance above at 169289, 170.63 and 171.48. Hourly Moving Averages are bearish, with the 200SMA at 170.48 and the daily 20EMA at 170.38. Hourly RSI is neutral at 43.