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5 Jul 2013
GBP/JPY 149.62 the low
FXstreet.com (London) - GBP/JPY is printing a low of 149.62 while the pair is heavily in the red following Carney’s statements.
GBP/JPY has shed 3 big figures from 153.00 on Wednesday, weeks high, when yesterday we witnessed 200 pips on the BoE. GBP/JPY was one of the hardest hit across the majors, for obvious reasons, although keeping in mind that the Japanese economy is showing bullish signs and improvements across all sectors. However, worth noting is the rise of Japans purchases in overseas assets, specifically USD denominated. Will we see the shine in the Yen smeared by todays US Jobs Report when US markets return from July 4th holidays, or will we witness a continuation of a stronger Japanese currency? That is yet to be seen form todays major risk event.
GBP/JPY remains in bullish channel
Although we have witness a big drop in the pair, the GBP/JPY is still moving with the bullish channel with longer term momentum indicators offering a bullish bias. In the short term however, risk is to the downside and a test of the ascending trend line support could come in to play at 147.60 (June lows) on the daily chart. Support before there comes as 149.30 and 148.85 while pair would find resistance at 152.00.
GBP/JPY has shed 3 big figures from 153.00 on Wednesday, weeks high, when yesterday we witnessed 200 pips on the BoE. GBP/JPY was one of the hardest hit across the majors, for obvious reasons, although keeping in mind that the Japanese economy is showing bullish signs and improvements across all sectors. However, worth noting is the rise of Japans purchases in overseas assets, specifically USD denominated. Will we see the shine in the Yen smeared by todays US Jobs Report when US markets return from July 4th holidays, or will we witness a continuation of a stronger Japanese currency? That is yet to be seen form todays major risk event.
GBP/JPY remains in bullish channel
Although we have witness a big drop in the pair, the GBP/JPY is still moving with the bullish channel with longer term momentum indicators offering a bullish bias. In the short term however, risk is to the downside and a test of the ascending trend line support could come in to play at 147.60 (June lows) on the daily chart. Support before there comes as 149.30 and 148.85 while pair would find resistance at 152.00.