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27 Sep 2013
GBP/JPY breaking ascending supporting line
FXstreet.com (London) - GBP/JPY has printed a high of 159.11 on Sterling strength but supply has taken the pair back to supporting levels sub the handle and recorded a low of 158.26.
Research teams at TD Securities explained that Inflation continues to creep higher, +0.9%/yr for national measure for Aug and +0.5%/yr for the Tokyo measure for Sept, reflecting the lower exchange rate rather than true demand pull-inflation. Meanwhile, the research teams noted that GBP has been one of the out-performers on the day, with the pound spiking higher on the headlines that “Carney does not see a case for more QE.” Although GBP/USD has since fallen away somewhat, the 5s10s gilts curve has fallen back to its recent lows at around 119bp. UK 10-year swap yields have also touched key support levels at 2.666% this morning, a significant level—a break of which would easily open up a move lower to 2.51%.
GBP/JPY Level’s
The 20 DMA is 157.35, the 50 DMA is 153.90 and the 200 DMA is 149.05. RSI (14) 47.72. Supports are ascending from 156.65, 157.00, 157.35 and 157.95. Spot is currently 158.35 while resistances are coming in at 159.25, 159.70, 160.00 and 160.40.
Research teams at TD Securities explained that Inflation continues to creep higher, +0.9%/yr for national measure for Aug and +0.5%/yr for the Tokyo measure for Sept, reflecting the lower exchange rate rather than true demand pull-inflation. Meanwhile, the research teams noted that GBP has been one of the out-performers on the day, with the pound spiking higher on the headlines that “Carney does not see a case for more QE.” Although GBP/USD has since fallen away somewhat, the 5s10s gilts curve has fallen back to its recent lows at around 119bp. UK 10-year swap yields have also touched key support levels at 2.666% this morning, a significant level—a break of which would easily open up a move lower to 2.51%.
GBP/JPY Level’s
The 20 DMA is 157.35, the 50 DMA is 153.90 and the 200 DMA is 149.05. RSI (14) 47.72. Supports are ascending from 156.65, 157.00, 157.35 and 157.95. Spot is currently 158.35 while resistances are coming in at 159.25, 159.70, 160.00 and 160.40.