6 Nov 2013
GBP/JPY skyrockets as Nikkei soars on Toyota gains
FXstreet.com (Athens) – The GBP/JPY was hovering around 158.23, but after the Nikkei turned in a positive territory, the cross spiked higher around 158.87.
GBP/JPY sharply higher for a consecutive third ‘green’ day
The GBP/JPY is now paring a slight of its earlier sharp gains trading near 158.60 area. Market investors could attribute the uptrend of the cross mainly to the sharp rise of the Nikkei index due to the upbeat Toyota earnings and maybe to a more or less extent to the daily seven days Shibor benchmark rate which is currently down to 3.866, thus a 2-week low. What’s more, the cross also got a solid boost from the surging GBP crosses, mainly the GBP/USD and the overall risk-on sentiment. Finally, the pound might be also boosted by the fact that taken for granted that yesterday’s Markit PMI services released at the best levels since 1997, the BoE on tomorrow’s meeting is widely expected to offer up an unchanged policy stance.
Technical Aspects on the GBP/JPY
It is noteworthy, that the cross since Monday’s opening has bounced decently from the support as of 157.06 (the trend line from August, 23.6% Fibonacci retracement). What’s more, the cross in order to move further upwards it might have to break decently the 159.44 (38.2% Fib expansion), which could drive it further upwards near 160.90 (50% Fib exp.). On the down side,a clear reversal below 157.06 , could lead the cross under much pressure near the 155.25 area (38.2% Fib retracement).
GBP/JPY sharply higher for a consecutive third ‘green’ day
The GBP/JPY is now paring a slight of its earlier sharp gains trading near 158.60 area. Market investors could attribute the uptrend of the cross mainly to the sharp rise of the Nikkei index due to the upbeat Toyota earnings and maybe to a more or less extent to the daily seven days Shibor benchmark rate which is currently down to 3.866, thus a 2-week low. What’s more, the cross also got a solid boost from the surging GBP crosses, mainly the GBP/USD and the overall risk-on sentiment. Finally, the pound might be also boosted by the fact that taken for granted that yesterday’s Markit PMI services released at the best levels since 1997, the BoE on tomorrow’s meeting is widely expected to offer up an unchanged policy stance.
Technical Aspects on the GBP/JPY
It is noteworthy, that the cross since Monday’s opening has bounced decently from the support as of 157.06 (the trend line from August, 23.6% Fibonacci retracement). What’s more, the cross in order to move further upwards it might have to break decently the 159.44 (38.2% Fib expansion), which could drive it further upwards near 160.90 (50% Fib exp.). On the down side,a clear reversal below 157.06 , could lead the cross under much pressure near the 155.25 area (38.2% Fib retracement).