30 Jul 2013
GBP/JPY testing below 150.00 handle
FXstreet.com (London) - GBP/JPY is following suit with cable with the pound under pressure and while the cross is breaking below 150.00 handle.
Jacqui Douglas, Senior Global Strategist, Rates and FX Research at TD Securities noted that in Japan, Industrial production for June fell twice as fast as expected at –3.3% M/M (mkt –1.5%). However, she added, with big gains in prior months, IP was still up 1.4% Q/Q in Q2 overall, which is consistent with GDP growth of around 5% SAAR. “The BoJ Governor in a speech yesterday “Toward Overcoming Deflation” noted that its QQE program “by no means intends to maneuver the exchange rate”, but the yen at 100 was welcome compared with pre-stimulus levels of around 80, and he concluded that the QQE program was successful to date by improving sentiment and activity, and kept JGB yields flat while US yields rose”. Eyes are on BoE this week.
GBP/JPY breaking bullish support
GBP/JPY is now moving into negative territory below 50 d ma and moving through key psychological 150.00 towards 147.65 zone. The GBP/JPY 20d ma is at 151.40, 50d ma 151.50, and 200 d ma 144.05. RSI (9) is reading 38.92. Supports are at 148.30, 148.80, 149.45, 149.75, while spot is currently testing below 150.00. The resistances are 151.65, 152.45, 152.90 and 153.15.
Jacqui Douglas, Senior Global Strategist, Rates and FX Research at TD Securities noted that in Japan, Industrial production for June fell twice as fast as expected at –3.3% M/M (mkt –1.5%). However, she added, with big gains in prior months, IP was still up 1.4% Q/Q in Q2 overall, which is consistent with GDP growth of around 5% SAAR. “The BoJ Governor in a speech yesterday “Toward Overcoming Deflation” noted that its QQE program “by no means intends to maneuver the exchange rate”, but the yen at 100 was welcome compared with pre-stimulus levels of around 80, and he concluded that the QQE program was successful to date by improving sentiment and activity, and kept JGB yields flat while US yields rose”. Eyes are on BoE this week.
GBP/JPY breaking bullish support
GBP/JPY is now moving into negative territory below 50 d ma and moving through key psychological 150.00 towards 147.65 zone. The GBP/JPY 20d ma is at 151.40, 50d ma 151.50, and 200 d ma 144.05. RSI (9) is reading 38.92. Supports are at 148.30, 148.80, 149.45, 149.75, while spot is currently testing below 150.00. The resistances are 151.65, 152.45, 152.90 and 153.15.