4 Feb 2014
GBP/JPY testing the upside 166.00
FXStreet (Guatemala) - GBP/JPY is drifting to test 166.00 after dropping from 168 territory Monday business post risk aversion over EM’s.
The UK printed a decent PMI Construction number, 64.6 vs 615 consensus that took the pair in a spike to the highs from 1.63 the figure. Strategists at TD Securities said, “The construction PMI jumped from 62.1 to 64.6 in Jan, reaching its highest level since Aug 2007. After yesterday’s UK manufacturing PMI was a touch softer than expected, and the US ISM dropped quite sharply, this was a reminder that growth prospects in the UK remain quite strong”. Strategists at Bank of America Merrill Lynch explained that the BoE is expected to leave rates unchanged. Strategists at Bank of America Merrill Lynch said,"The BoE is universally expected to leave interest rates and QE on hold at 0.5% and £375bn, respectively, at its meeting this week. Greater focus will be on whether it issues a statement alongside its decision, given that, with the unemployment rate only 0.1ppt above their 7% Forward Guidance threshold, the BoE is likely to set out further guidance in its Inflation Report on the 12th."
GBP/JPY Levels
The 20 DMA is 170.50, the 50 DMA is 170.00 and the 200 DMA is 158.35. RSI (14) reads 61.90. Supports are 163.70, 164.05, 164.20, 164.65, 165.25. Spot is 166.05 currently and resistances are 166.90, 167.70 and 168.20.
The UK printed a decent PMI Construction number, 64.6 vs 615 consensus that took the pair in a spike to the highs from 1.63 the figure. Strategists at TD Securities said, “The construction PMI jumped from 62.1 to 64.6 in Jan, reaching its highest level since Aug 2007. After yesterday’s UK manufacturing PMI was a touch softer than expected, and the US ISM dropped quite sharply, this was a reminder that growth prospects in the UK remain quite strong”. Strategists at Bank of America Merrill Lynch explained that the BoE is expected to leave rates unchanged. Strategists at Bank of America Merrill Lynch said,"The BoE is universally expected to leave interest rates and QE on hold at 0.5% and £375bn, respectively, at its meeting this week. Greater focus will be on whether it issues a statement alongside its decision, given that, with the unemployment rate only 0.1ppt above their 7% Forward Guidance threshold, the BoE is likely to set out further guidance in its Inflation Report on the 12th."
GBP/JPY Levels
The 20 DMA is 170.50, the 50 DMA is 170.00 and the 200 DMA is 158.35. RSI (14) reads 61.90. Supports are 163.70, 164.05, 164.20, 164.65, 165.25. Spot is 166.05 currently and resistances are 166.90, 167.70 and 168.20.