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11 Jun 2013
GBP/JPY breaking higher 151.00
FXstreet.com (London) - GBP/JPY has broken to the top side after printing a low in the European session of 150.25.
Yen enjoyed upbeat BOJ commentary while the Pound has enjoyed improvements in the economy
For the UK, Manufacturing Production came in -0.5% vrs the consensus of -0.4% and -1.4% previous where as the Industrial Production printed -0.6% -0.7% -1.4%. The mixed bag of data was overall bullish for the pound and EUR/GBP is drifting away from the highs achieved in the European session. Earlier, we also had the release of Rics Housing data that came in better than expected, also aiding the pounds advancement. Kit Juckes for Societe Generale said the BOJ raised the economic assessment for a 6th month but resisted the temptation to react to market volatility. No action from the Bank of Japan was a surprise to a market that was looking for liquidity measures to quell the volatility in the Japanese bond market, according to research teams at TD Securities. They added that the BoJ action was a reminder of the more significant tidal shift that markets are contemplating, the Fed’s potential tapering of QE. That issue will only become more of a concern as we approach next week’s FOMC meeting.
Technically GBP/JPY is still printing bearishly on the charts
Teams at ICN.com said that the pair strongly broke 151.80 levels and is still moving to the downside towards 147.65 where further bearishness is likely today and remains valid unless the pair breached levels 151.80 and stabilized above it.
Yen enjoyed upbeat BOJ commentary while the Pound has enjoyed improvements in the economy
For the UK, Manufacturing Production came in -0.5% vrs the consensus of -0.4% and -1.4% previous where as the Industrial Production printed -0.6% -0.7% -1.4%. The mixed bag of data was overall bullish for the pound and EUR/GBP is drifting away from the highs achieved in the European session. Earlier, we also had the release of Rics Housing data that came in better than expected, also aiding the pounds advancement. Kit Juckes for Societe Generale said the BOJ raised the economic assessment for a 6th month but resisted the temptation to react to market volatility. No action from the Bank of Japan was a surprise to a market that was looking for liquidity measures to quell the volatility in the Japanese bond market, according to research teams at TD Securities. They added that the BoJ action was a reminder of the more significant tidal shift that markets are contemplating, the Fed’s potential tapering of QE. That issue will only become more of a concern as we approach next week’s FOMC meeting.
Technically GBP/JPY is still printing bearishly on the charts
Teams at ICN.com said that the pair strongly broke 151.80 levels and is still moving to the downside towards 147.65 where further bearishness is likely today and remains valid unless the pair breached levels 151.80 and stabilized above it.