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31 Oct 2013
GBP/JPY battling to gain the 158.00 handle
FXstreet.com (London) - GBP/JPY has been battling back after a sharp decline from 158.20 territory when it reached a low of below the 157.35 supporting line.
BoJ left rates on hold so no surprises there and UK housing data continues to surprise on the upside, rising 1.0% m/m in October (vs. expected 0.7%) according to Nationwide. Research teams at Bank of Tokyo Mitsubishi UFJ, Ltd explained the pound’s loss of upward momentum has been driven by the paring back of Bank of England monetary tightening expectations. “Investors are more comfortable that the first interest rate hike from the BoE is unlikely to occur until around mid-2015 with the scale of tightening expected beyond also reduced. The implied yield on the December 2015 and 2016 Short Sterling futures contracts have declined by around 50 and 60 basis points respectively since early September to around 1.3% and 2.1%”.
GBP/JPY Levels
The 20 DMA is 157.30, the 50 DMA is 156.75 and the 200 DMA is 150.95. RSI (14) reads 52.44. Supports are ascending from 155.85, 156.45, 156.75, 157.35, 157.60, 158.30, 158.75, 159.55 and 160.00.
BoJ left rates on hold so no surprises there and UK housing data continues to surprise on the upside, rising 1.0% m/m in October (vs. expected 0.7%) according to Nationwide. Research teams at Bank of Tokyo Mitsubishi UFJ, Ltd explained the pound’s loss of upward momentum has been driven by the paring back of Bank of England monetary tightening expectations. “Investors are more comfortable that the first interest rate hike from the BoE is unlikely to occur until around mid-2015 with the scale of tightening expected beyond also reduced. The implied yield on the December 2015 and 2016 Short Sterling futures contracts have declined by around 50 and 60 basis points respectively since early September to around 1.3% and 2.1%”.
GBP/JPY Levels
The 20 DMA is 157.30, the 50 DMA is 156.75 and the 200 DMA is 150.95. RSI (14) reads 52.44. Supports are ascending from 155.85, 156.45, 156.75, 157.35, 157.60, 158.30, 158.75, 159.55 and 160.00.