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13 Feb 2014
GBP/JPY losing traction on 170 handle
FXStreet (Guatemala) - GBP/JPY has lost traction on the 170 handle and has lost some 100 pips recording a low of 169.24.
GBP/JPY is much more of a play on USD/JPY as the pair has lost momentum and positioning is dragging on the cross even though Sterling is performing well in it’s own right. We have seen a surprise move in the Yen to the upside, breaching 102.00, but all the same, all that weight on the cross is keeping it below the 170 handle. Strategists at Brown Brothers Harriman explained, “The dollar had recovered from the JPY100.75 area seen last week, but ran out of momentum. In the past four sessions, the dollar stalled in front of the JPY102.80 area, which is a technical retracement target and close to the 20-day moving average that is seen near JPY102.65. Although US shares recovered yesterday, the Nikkei lost 1.8% and S&P futures are off almost 0.5%. US Treasury yields are lower. The US dollar sees support in the JPY101.50-70 band … we suspect that the dollar's low is in place or nearly so”.
GBP/JPY Levels
The 20 DMA is 169.15, the 50 DMA is 170.05 and the 200 DMA is 158.90. RSI (14) reads 48.48. Supports are ascending from 167.20, 167.55, 168.10, 169.20. Spot is 169.74, 170.45, 171.00, 171.45 and 172.30.
GBP/JPY is much more of a play on USD/JPY as the pair has lost momentum and positioning is dragging on the cross even though Sterling is performing well in it’s own right. We have seen a surprise move in the Yen to the upside, breaching 102.00, but all the same, all that weight on the cross is keeping it below the 170 handle. Strategists at Brown Brothers Harriman explained, “The dollar had recovered from the JPY100.75 area seen last week, but ran out of momentum. In the past four sessions, the dollar stalled in front of the JPY102.80 area, which is a technical retracement target and close to the 20-day moving average that is seen near JPY102.65. Although US shares recovered yesterday, the Nikkei lost 1.8% and S&P futures are off almost 0.5%. US Treasury yields are lower. The US dollar sees support in the JPY101.50-70 band … we suspect that the dollar's low is in place or nearly so”.
GBP/JPY Levels
The 20 DMA is 169.15, the 50 DMA is 170.05 and the 200 DMA is 158.90. RSI (14) reads 48.48. Supports are ascending from 167.20, 167.55, 168.10, 169.20. Spot is 169.74, 170.45, 171.00, 171.45 and 172.30.