7 Apr 2014
GBP/JPY has retraced from Asian highs; 171.00 is in sight
FXStreet (Moscow) - GBP/JPY retraced from the intraday high of 171.42 and stopped at the bespoke support of 171.01.
GBP/JPY is in wait-and-see mode
GBP/JPY showed an unflattering dynamics during the previous week that ended in a Gravestone Doji candlestick formation. Bad new for bulls as this pattern usually means that bears managed to claim victory and the trend is about to change. The fundamental picture is a bit contradictory as the GBP is well positioned against JPY as differential between Japanese and UK rate expectations is widening. There are no meaningful economic reports from UK - apart from Lloyds Employment index - scheduled for today, meaning that the cross will be influenced mostly by speculative tides ahead of Bank of Japan monetary policy decision to be announced at night. On the intraday basis the GBP/JPY bears will want it to break below 171.00, while bulls might try to push it above 171.42.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 171.56, with support below at 170.59, 170.02, and 169.05, with resistance above at 172.12, 173.09 and 172.66. Hourly Moving Averages are bearish, with the 200SMA at 171.14 and the daily is bullish at 20EMA at 170.67. Hourly RSI is neutral at 20.
GBP/JPY is in wait-and-see mode
GBP/JPY showed an unflattering dynamics during the previous week that ended in a Gravestone Doji candlestick formation. Bad new for bulls as this pattern usually means that bears managed to claim victory and the trend is about to change. The fundamental picture is a bit contradictory as the GBP is well positioned against JPY as differential between Japanese and UK rate expectations is widening. There are no meaningful economic reports from UK - apart from Lloyds Employment index - scheduled for today, meaning that the cross will be influenced mostly by speculative tides ahead of Bank of Japan monetary policy decision to be announced at night. On the intraday basis the GBP/JPY bears will want it to break below 171.00, while bulls might try to push it above 171.42.
What are today’s key GBP/JPY levels?
Today's central pivot point can be found at 171.56, with support below at 170.59, 170.02, and 169.05, with resistance above at 172.12, 173.09 and 172.66. Hourly Moving Averages are bearish, with the 200SMA at 171.14 and the daily is bullish at 20EMA at 170.67. Hourly RSI is neutral at 20.