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2 Apr 2014
GBP/JPY undertone bullish
FXStreet (Guatemala) - GBP/JPY is trading at 172.34, having posted a daily high at 172.54 and low at 172.31.
The undertone to the pair is bullish and largely based upon a well bid pound, fundamentally speaking, "and a large negative hit to the Japanese’s economy from the sales tax hike would likely trigger further monetary easing from the BoJ by the end of Q2 potentially triggering an accelerated yen sell off", noted Lee Hardman, strategist at The Bank of Tokyo-Mitsubishi UFJ, Ltd.
GBP well bid
Analysts at Rabobank explained that sterling longs pushed to their strongest levels since May 2011. “While the tone of the MPC remains essentially dovish, there appears to be little doubt that the next BoE policy move will be a rate hike and this should provide underlying support”.
GBP/JPY RSI neutral
RSI is in neutral territory at 62.51, down from it’s last hourly close at 63.17, while ADX is ranging above 30 at 17.68, down from 24.07 at the last hourly close. Looking to a daily chart, we see that RSI is neutral at 61.82. The 200 SMA is currently at 171.84, up from 169.85 at the last period close, and climbing on the hourly GBP/JPY chart. Moving in an upward trend, the exponential average closing price is 169.96.
GBP/JPY Levels
With spot trading at 172.38, we can see next resistance ahead at 172.43 (Daily Classic R1), 172.54 (Daily High), 172.54 (Yesterday's High), 172.78 (Monthly High) and 172.87 (Daily Classic R2). Support below can be found at 172.37 (Weekly High), 172.37 (Daily Open), 172.31 (Daily Low), 172.25 (Weekly Classic R1) and 172.22 (Hourly 20 EMA).
The undertone to the pair is bullish and largely based upon a well bid pound, fundamentally speaking, "and a large negative hit to the Japanese’s economy from the sales tax hike would likely trigger further monetary easing from the BoJ by the end of Q2 potentially triggering an accelerated yen sell off", noted Lee Hardman, strategist at The Bank of Tokyo-Mitsubishi UFJ, Ltd.
GBP well bid
Analysts at Rabobank explained that sterling longs pushed to their strongest levels since May 2011. “While the tone of the MPC remains essentially dovish, there appears to be little doubt that the next BoE policy move will be a rate hike and this should provide underlying support”.
GBP/JPY RSI neutral
RSI is in neutral territory at 62.51, down from it’s last hourly close at 63.17, while ADX is ranging above 30 at 17.68, down from 24.07 at the last hourly close. Looking to a daily chart, we see that RSI is neutral at 61.82. The 200 SMA is currently at 171.84, up from 169.85 at the last period close, and climbing on the hourly GBP/JPY chart. Moving in an upward trend, the exponential average closing price is 169.96.
GBP/JPY Levels
With spot trading at 172.38, we can see next resistance ahead at 172.43 (Daily Classic R1), 172.54 (Daily High), 172.54 (Yesterday's High), 172.78 (Monthly High) and 172.87 (Daily Classic R2). Support below can be found at 172.37 (Weekly High), 172.37 (Daily Open), 172.31 (Daily Low), 172.25 (Weekly Classic R1) and 172.22 (Hourly 20 EMA).