17 Jan 2014
GBP/JPY reaffirming the channel
FXstreet.com (Guatemala) - GBP/JPY supply has contained the sharp rally and is drifting on the offer resulting in profits ahead of the weekend while maintaining the ascending channel.
The data today has been very favourable from the UK for the pound. Retail Sales printed a very high number relative to the consensus of 2.6%, coming in at 5.3%. Strategists at Brown Brother Harriman explained there had been some concern that the UK economic momentum was fading, but today's report, even if a bit of a statistical quirk or outlier, revives ideas that the BOE will be forced to hike rates sooner than its forward guidance suggests. “Since the end of last year, the implied yield on the Dec '14 short sterling contract fell about 20 bp. With today's action, nearly half of that has been recouped”.
GBP/JPY Levels
The 20 DMA is 171.75, the 50 DMA is 167.85 and the 200 DMA is 157.25. RSI (14) reads 52.16.
Supports are ascending from 167.55, 168.35, 169.20 and 170.10. Spot is 171.29 while resistances are 172.20, 172.75 and 173.15.
The data today has been very favourable from the UK for the pound. Retail Sales printed a very high number relative to the consensus of 2.6%, coming in at 5.3%. Strategists at Brown Brother Harriman explained there had been some concern that the UK economic momentum was fading, but today's report, even if a bit of a statistical quirk or outlier, revives ideas that the BOE will be forced to hike rates sooner than its forward guidance suggests. “Since the end of last year, the implied yield on the Dec '14 short sterling contract fell about 20 bp. With today's action, nearly half of that has been recouped”.
GBP/JPY Levels
The 20 DMA is 171.75, the 50 DMA is 167.85 and the 200 DMA is 157.25. RSI (14) reads 52.16.
Supports are ascending from 167.55, 168.35, 169.20 and 170.10. Spot is 171.29 while resistances are 172.20, 172.75 and 173.15.