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11 Feb 2014
GBP/JPY awaiting MPC/BoE IR
FXStreet (Guatemala) - Sterling crosses, including the GBP/JPY, are awaiting Wednesday's Bank of England (BoE) Inflation Report which is expected to see a change of guidance.
Strategists at RBS said, in relation to Wedensday, “Our central case is that the BoE introduces a new policy rate forecast, potentially presented in the form of a new fan chart. To justify a potentially lower profile for rates, they may also choose to lower their estimate of the equilibrium rate for the labour market (NAIRU) while at the same time leaving the threshold unchanged at 7% or ditching it altogether”. Meanwhile, GBP/JPY lost the 168 handle and is trading towards the mid way point to the downside of the 167 handle currently. The cross dropped despite USD/JPY falling back to 102.07 the low as Japan’s current account deficit widened to a record level. However, the Yen was still one of the top performs despite the poor data.
GBP/JPY Levels
The 20 DMA is 169.40, the 50 DMA is 170.00 and the 200 DMA is 158.70. RSI (14) reads 55.49. Supports are ascending from 165.05, 165.80, 166.15 and 166.95. Spot is 167.64 while key resistances are 168.40, 169.30, 169.80, 171.45 and 172.30.
Strategists at RBS said, in relation to Wedensday, “Our central case is that the BoE introduces a new policy rate forecast, potentially presented in the form of a new fan chart. To justify a potentially lower profile for rates, they may also choose to lower their estimate of the equilibrium rate for the labour market (NAIRU) while at the same time leaving the threshold unchanged at 7% or ditching it altogether”. Meanwhile, GBP/JPY lost the 168 handle and is trading towards the mid way point to the downside of the 167 handle currently. The cross dropped despite USD/JPY falling back to 102.07 the low as Japan’s current account deficit widened to a record level. However, the Yen was still one of the top performs despite the poor data.
GBP/JPY Levels
The 20 DMA is 169.40, the 50 DMA is 170.00 and the 200 DMA is 158.70. RSI (14) reads 55.49. Supports are ascending from 165.05, 165.80, 166.15 and 166.95. Spot is 167.64 while key resistances are 168.40, 169.30, 169.80, 171.45 and 172.30.