6 Feb 2014
GBP/JPY steadier and a drift on the bid
FXStreet (Guatemala) - GBP/JPY is levelling out but is continuing on the bid on a day where the pound has performed remarkably well given the sentiment around the speculation of a dovish statement that might accompany the BoE’s rate decision.
GBP/JPY is drifting up from 165.20 region after the pair climaxed its run up from sub 164 handle and reached into the 165.70’s, meeting supply there. Strategists at TD noted inflationary pressures are in the pipeline for the UK, although next week’s Inflation Report from BoE is likely going to show some softer inflation forecasts, as the BoE tries to drive home the point that there’s no rush to raise rates. “The Markit report mentioned that record rainfall in parts of the country has been depressing activity, so (assuming it eventually stops raining), we should see the services PMI bounce back a bit next month”.
GBP/JPY Levels
The 20 DMA is 170.25, the 50 DMA is 170.00 and the 200 DMA is 158.45. RSI (14) reads 58.57. Supports are ascending from 163.70, 163.90 and 164.30. Spot is 165.60 while resistances are 165.70 and onto 166.90, 167.70, 168.20 and 169.30.
GBP/JPY is drifting up from 165.20 region after the pair climaxed its run up from sub 164 handle and reached into the 165.70’s, meeting supply there. Strategists at TD noted inflationary pressures are in the pipeline for the UK, although next week’s Inflation Report from BoE is likely going to show some softer inflation forecasts, as the BoE tries to drive home the point that there’s no rush to raise rates. “The Markit report mentioned that record rainfall in parts of the country has been depressing activity, so (assuming it eventually stops raining), we should see the services PMI bounce back a bit next month”.
GBP/JPY Levels
The 20 DMA is 170.25, the 50 DMA is 170.00 and the 200 DMA is 158.45. RSI (14) reads 58.57. Supports are ascending from 163.70, 163.90 and 164.30. Spot is 165.60 while resistances are 165.70 and onto 166.90, 167.70, 168.20 and 169.30.