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17 Jul 2013
GBP/JPY rallies to 152.00
FXstreet.com (London) - GBP/JPY rallied to print above 152.00 and record a high of 152.06 on the back of upbeat UK data and an unanimous MPC.
Carney had all 9 members vote unanimously in his first meeting re QE and the interest rate. Rates will remain low for the foreseeable future, inflation isn’t a direct concern and forward guidance is the preferred measure over any extension of QE for the time being. At the same time, the claimant count for June surprised markets and came in much better at -21.2K vrs -8.0k consensuses. Cable jumped significantly higher to print a high of 1.5248 but has since reduced gains back below the 1.5200 handle.
GBP/JPY moving back into the bull channel
GBP/JPY had been testing the bullish channel’s downside of late but has now breached the 150.79 area, marking the entry point back into the bullish zone. However, if this initial spike doesn’t hold after the market has digested the minutes and if it starts to settles again and reverts back on longer dated fundamentals surrounding the serious debt problems that the UK actually faces and the risk of inflation in a stagnant economy, requiring a weaker Sterling overall, areas below here would mirror those of earlier in the month, targeting 147.50 area and the April levels. Support 150.00, 149.70, 149.45, 148.80, 148.30. Resistance is evident at the 152.00 handle.
Carney had all 9 members vote unanimously in his first meeting re QE and the interest rate. Rates will remain low for the foreseeable future, inflation isn’t a direct concern and forward guidance is the preferred measure over any extension of QE for the time being. At the same time, the claimant count for June surprised markets and came in much better at -21.2K vrs -8.0k consensuses. Cable jumped significantly higher to print a high of 1.5248 but has since reduced gains back below the 1.5200 handle.
GBP/JPY moving back into the bull channel
GBP/JPY had been testing the bullish channel’s downside of late but has now breached the 150.79 area, marking the entry point back into the bullish zone. However, if this initial spike doesn’t hold after the market has digested the minutes and if it starts to settles again and reverts back on longer dated fundamentals surrounding the serious debt problems that the UK actually faces and the risk of inflation in a stagnant economy, requiring a weaker Sterling overall, areas below here would mirror those of earlier in the month, targeting 147.50 area and the April levels. Support 150.00, 149.70, 149.45, 148.80, 148.30. Resistance is evident at the 152.00 handle.