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8 Oct 2013
GBP/JPY glides close to 155.53 immediate support
FXstreet.com (Chicago) - GBP/JPY bounced off from 155.40 lows shortly after the opening of Tokyo’s session with a Nikkei now printing 0.67% losses.
Data recap
A potential risk aversion behavior may explain the yen’s strengthening these past few days combined with a slacking pound that sails away from the 159, 158, 157 and now 156 zones giving in hundreds of pips in a matter of days. In Japan, the trade balance – BOD basis for August was -885.9B vs. past -943.3B and expected -880.1B. In the UK, market participants digested mixed data releases with retail sales lower than previous results and better than expected RICS housing price balances ahead of the NIESR GDP estimate and the BoE interest rate decision on Wednesday and Thursday respectively.
GBP/JPY Technical Levels
Technically speaking, the pair is offered at 155.61 and oscillates between supports aligned at 155.53 (September 8th lows), 155.19 (September 4th highs) ahead of 154.65 (August 23rd highs) and the resistances set at 156.42 (September 5th highs), 156.95 (September 13th lows) followed by 157.39 (September 30th lows). Extending the bearish channel that started last September 30th, the pair extends the downward and steep trendline printing 3-week lows. According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis below the EMA20.
Data recap
A potential risk aversion behavior may explain the yen’s strengthening these past few days combined with a slacking pound that sails away from the 159, 158, 157 and now 156 zones giving in hundreds of pips in a matter of days. In Japan, the trade balance – BOD basis for August was -885.9B vs. past -943.3B and expected -880.1B. In the UK, market participants digested mixed data releases with retail sales lower than previous results and better than expected RICS housing price balances ahead of the NIESR GDP estimate and the BoE interest rate decision on Wednesday and Thursday respectively.
GBP/JPY Technical Levels
Technically speaking, the pair is offered at 155.61 and oscillates between supports aligned at 155.53 (September 8th lows), 155.19 (September 4th highs) ahead of 154.65 (August 23rd highs) and the resistances set at 156.42 (September 5th highs), 156.95 (September 13th lows) followed by 157.39 (September 30th lows). Extending the bearish channel that started last September 30th, the pair extends the downward and steep trendline printing 3-week lows. According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis below the EMA20.