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12 Feb 2014
GBP/JPY offers preventing a grip on the 169 handle
FXStreet (Guatemala) - GBP/JPY has lost the conviction it had been displaying in NY and has lost the grip of the 169 handle treading on the coat tails of USD/JPY.
With Yellen now fading into the background, the JPY is recovering slightly but now the BoE is up next to the table and the markets are wondering what might be in store from Carneys Quarterly Inflation Report. Strategists at Rabobank explained that, “Mr Carney will have to try to explain why the UK recovery is so much stronger than he had projected (especially around London and its very frothy housing market) at a time when CPI is at its 2.0% target (having been above that level for several years) – and yet the Bank is still unwilling to signal any imminent increase in interest rates. He’s sure to face questions over how strong the recovery can really be if it relies on such extraordinary monetary policy, and whether he is comfortable with yet another housing boom”.
GBP/JPY Levels
The 20 DMA is 169.35, the 50 DMA is 170.00 and the 200 DMA is 158.75. RSI (14) reads 54.37. Supports are ascending from 165.05, 165.80, 166.15, 166.70. Spot is 168.58 while resistances are 169.30, 169.80, 171.45 and 172.30.
With Yellen now fading into the background, the JPY is recovering slightly but now the BoE is up next to the table and the markets are wondering what might be in store from Carneys Quarterly Inflation Report. Strategists at Rabobank explained that, “Mr Carney will have to try to explain why the UK recovery is so much stronger than he had projected (especially around London and its very frothy housing market) at a time when CPI is at its 2.0% target (having been above that level for several years) – and yet the Bank is still unwilling to signal any imminent increase in interest rates. He’s sure to face questions over how strong the recovery can really be if it relies on such extraordinary monetary policy, and whether he is comfortable with yet another housing boom”.
GBP/JPY Levels
The 20 DMA is 169.35, the 50 DMA is 170.00 and the 200 DMA is 158.75. RSI (14) reads 54.37. Supports are ascending from 165.05, 165.80, 166.15, 166.70. Spot is 168.58 while resistances are 169.30, 169.80, 171.45 and 172.30.