Back
19 Feb 2014
GBP/JPY fighting back onto the 170 handle
FXStreet (Guatemala) - Sterling has been under pressure in Europe, losing a big figure on the disappointing employment data and fell to a low of 1.6636 before finding support. The cross has started to recover, and is trading back to the mid point of the 170 handle.
Strategist’s at TD Securities explained that, after 9 straight months of a flat/falling unemployment rate, the UK finally saw a bit of a reversal as the unemployment rate unexpectedly ticked higher to 7.2% in Dec (mkt 7.1%). “At the same time we also saw wage growth tick up to its highest level since July (+1.1% Y/Y on a headline basis), and that’s probably the variable that matters a little more for the BoE going forward. We also had the minutes from the 6 February BoE meeting today, and as expected there wasn’t anything new beyond what we already saw in the QIR and the ensuing MPC media deluge. There was a little more focus on sterling, with the MPC noting that FX strategists had been attributing the appreciation to the stronger UK outlook, but nothing too surprising”.
GBP/JPY Levels
The 20 DMA is 169.00, the 50 DMA is 170.20 and the 200 DMA is 159.20. RSI (14) reads 41.93. Supports are ascending from 168.80, 169.15 and 169.90. Spot is 170.37 while resistances are 171.85, 172.30, 172.80 and 173.65.
Strategist’s at TD Securities explained that, after 9 straight months of a flat/falling unemployment rate, the UK finally saw a bit of a reversal as the unemployment rate unexpectedly ticked higher to 7.2% in Dec (mkt 7.1%). “At the same time we also saw wage growth tick up to its highest level since July (+1.1% Y/Y on a headline basis), and that’s probably the variable that matters a little more for the BoE going forward. We also had the minutes from the 6 February BoE meeting today, and as expected there wasn’t anything new beyond what we already saw in the QIR and the ensuing MPC media deluge. There was a little more focus on sterling, with the MPC noting that FX strategists had been attributing the appreciation to the stronger UK outlook, but nothing too surprising”.
GBP/JPY Levels
The 20 DMA is 169.00, the 50 DMA is 170.20 and the 200 DMA is 159.20. RSI (14) reads 41.93. Supports are ascending from 168.80, 169.15 and 169.90. Spot is 170.37 while resistances are 171.85, 172.30, 172.80 and 173.65.