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19 Feb 2014
GBP/JPY lost the 171 handle
FXStreet (Guatemala) - GBP/JPY’s 169.20’s up trend is under threat as the pair loses the 171 handle and battles to hold in the containment of the ascending support line.
GBP/JPY is losing some fuel as cable is sold of from 1.6720 and pushed onto 1.6680 and while USD/JPY is easing back slightly and post the punishment that came as the BoJ announced that it had tweaked monetary policy. Lee Hardman, analyst at the Bank of Tokyo-Mitsubishi UFJ, Ltd explained,“The Policy Board decided to double the scale of i) the Stimulating Bank Lending Facility and ii) the Growth-Supporting Funding Facility and to
extend the application period of these facilities by one year.
Overall, the policy tweaks announced from the BoJ are unlikely to significantly ease monetary conditions in Japan in the near-term and will weigh only modestly upon the yen. The accelerated yen sell off overnight in part reflects reinforced investor expectations that the BoJ may deliver more significant monetary easing later this year. It also follows closely the release of the weaker than expected Japanese Q4
GDP report”.
GBP/JPY Levels
The 20 DMA is 169.05, the 50 DMA is 170.20 and the 200 DMA is 159.15. RSI (14) reads 48.41. Supports are ascending from 169.15, 169.90, 170.25 and 170.80. Spot is 170.78 while resistances are 172.30, 172.80, 173.65 and 173.95.
GBP/JPY is losing some fuel as cable is sold of from 1.6720 and pushed onto 1.6680 and while USD/JPY is easing back slightly and post the punishment that came as the BoJ announced that it had tweaked monetary policy. Lee Hardman, analyst at the Bank of Tokyo-Mitsubishi UFJ, Ltd explained,“The Policy Board decided to double the scale of i) the Stimulating Bank Lending Facility and ii) the Growth-Supporting Funding Facility and to
extend the application period of these facilities by one year.
Overall, the policy tweaks announced from the BoJ are unlikely to significantly ease monetary conditions in Japan in the near-term and will weigh only modestly upon the yen. The accelerated yen sell off overnight in part reflects reinforced investor expectations that the BoJ may deliver more significant monetary easing later this year. It also follows closely the release of the weaker than expected Japanese Q4
GDP report”.
GBP/JPY Levels
The 20 DMA is 169.05, the 50 DMA is 170.20 and the 200 DMA is 159.15. RSI (14) reads 48.41. Supports are ascending from 169.15, 169.90, 170.25 and 170.80. Spot is 170.78 while resistances are 172.30, 172.80, 173.65 and 173.95.