23 Jan 2014
GBP/JPY attempting the channel
FXstreet.com (Barcelona) - GBP/JPY made a number of higher highs back into the rising channel but has since turned lower during the Tokyo fix to print sub 173.50, currently oscillating in the 173.40’s.
Sterling has been one of the key movers with the UK unemployment falling to 7.1% in the three months to November from 7.7% in the three months to August. Meanwhile, the Yen has been caught range bound post a non-event from the BoJ. Sean Callow, FX Strategist at Westpac explained the unemployment rate in the UK is now just a tick above the Bank of England’s forward guidance 7% benchmark, which was seemingly anticipated in the simultaneous release of the January MPC minutes. “These noted that the Committee “saw no immediate need to raise bank rate even if the 7% unemployment threshold were to be reached in the near future”, citing subdued cost pressures and persistent headwinds to growth”. Note that RSI is above 70 while attempting the upside.
GBP/JPY Levels
The 20 DMA is 171.90, the 50 DMA is 168.60 and the 200 DMA is 157.60. RSI (14) 72.25. Spot is 173.49.
Sterling has been one of the key movers with the UK unemployment falling to 7.1% in the three months to November from 7.7% in the three months to August. Meanwhile, the Yen has been caught range bound post a non-event from the BoJ. Sean Callow, FX Strategist at Westpac explained the unemployment rate in the UK is now just a tick above the Bank of England’s forward guidance 7% benchmark, which was seemingly anticipated in the simultaneous release of the January MPC minutes. “These noted that the Committee “saw no immediate need to raise bank rate even if the 7% unemployment threshold were to be reached in the near future”, citing subdued cost pressures and persistent headwinds to growth”. Note that RSI is above 70 while attempting the upside.
GBP/JPY Levels
The 20 DMA is 171.90, the 50 DMA is 168.60 and the 200 DMA is 157.60. RSI (14) 72.25. Spot is 173.49.