19 Sep 2013
GBP/JPY capped at 158.55, session highs
FXstreet.com (Chicago) - GBP/JPY rallied to 158.55, double tops with last week’s peaks (September 10th) but failed to breakthrough strong resistance that could have led to 4-year record highs. Retracing at the opening of Tokyo, the pair aims to protect the 158.30 front.
Recovering UK economy?
Earlier in the UK, the BoE minutes from last meeting were released. With interests maintained at 0.5%, the minutes emphasized there was “some notable developments over the month” with “signs that the recovery was taking hold which had been accompanied by an upward movement in sterling market interest rates” adding “the GDP data for the second quarter had been revised up and survey indicators of activity had been upbeat”. In Japan, the merchandise trade balance total was -960.3B vs. previous -1,024.0B and expectations at -1,100.8B yen. The Nikkei trades up 0.88% so far.
GBP/JPY Technical Levels
Price action reveals the extension of a bullish channel way above the upward trendline originating last November 2012. With double tops (September 10th highs and September 18th peaks), the pair starts strong in Asia. Breaking through 158.60 zone would mean 4-year record highs for the pair now offered at 158.28 and fluctuating between supports aligned at 157.96 (September 15th highs), 157.47 (September 17th lows) ahead of 156.97 (September 15th lows) and resistances set at 158.51 (September 10th highs), 159 (key psychologically) followed by 160.61 (May 30th 2009 highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and is offered above the EMA20.
Recovering UK economy?
Earlier in the UK, the BoE minutes from last meeting were released. With interests maintained at 0.5%, the minutes emphasized there was “some notable developments over the month” with “signs that the recovery was taking hold which had been accompanied by an upward movement in sterling market interest rates” adding “the GDP data for the second quarter had been revised up and survey indicators of activity had been upbeat”. In Japan, the merchandise trade balance total was -960.3B vs. previous -1,024.0B and expectations at -1,100.8B yen. The Nikkei trades up 0.88% so far.
GBP/JPY Technical Levels
Price action reveals the extension of a bullish channel way above the upward trendline originating last November 2012. With double tops (September 10th highs and September 18th peaks), the pair starts strong in Asia. Breaking through 158.60 zone would mean 4-year record highs for the pair now offered at 158.28 and fluctuating between supports aligned at 157.96 (September 15th highs), 157.47 (September 17th lows) ahead of 156.97 (September 15th lows) and resistances set at 158.51 (September 10th highs), 159 (key psychologically) followed by 160.61 (May 30th 2009 highs). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and is offered above the EMA20.