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10 Feb 2014
GBP/JPY weighing in heavy on 168 handle
FXStreet (Guatemala) - GBP/JPY lost the 168 handle and is trading towards the mid way point to the downside of the 167 handle currently.
The cross dropped despite USD/JPY falling back to 102.07 the low as Japan’s current account deficit widened to a record level. This week for sterling plays out sensitively as the BOE’s quarterly inflation report takes on extra significance as analyst at Brown Brothers Harriman pointed out; “We don’t expect any major change to forward guidance”. They continued to explain that the Governor, Carney, has indicated that it will update the forward guidance that had not only listed certain knock-out considerations, but also identified the 7% unemployment level as a threshold for a review of monetary policy. “The media have been particularly hard on Carney, and many observers have claimed he is abandoning forward guidance.
GBP/JPY Levels
The 20 DMA is 169.40, the 50 DMA is 170.00 and the 200 DMA is 158.70. RSI (14) reads 56.76. Supports are ascending from 165.05, 165.80, 166.15 and 166.95. Spot is 167.54 while key resistances are 168.40, 169.30, 169.80, 171.45 and 172.30.
The cross dropped despite USD/JPY falling back to 102.07 the low as Japan’s current account deficit widened to a record level. This week for sterling plays out sensitively as the BOE’s quarterly inflation report takes on extra significance as analyst at Brown Brothers Harriman pointed out; “We don’t expect any major change to forward guidance”. They continued to explain that the Governor, Carney, has indicated that it will update the forward guidance that had not only listed certain knock-out considerations, but also identified the 7% unemployment level as a threshold for a review of monetary policy. “The media have been particularly hard on Carney, and many observers have claimed he is abandoning forward guidance.
GBP/JPY Levels
The 20 DMA is 169.40, the 50 DMA is 170.00 and the 200 DMA is 158.70. RSI (14) reads 56.76. Supports are ascending from 165.05, 165.80, 166.15 and 166.95. Spot is 167.54 while key resistances are 168.40, 169.30, 169.80, 171.45 and 172.30.