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7 Oct 2013
GBP/JPY range narrowing; next leg lower still?
FXstreet.com (London) - GBP/JPY has attempted the gap higher but has failed to move beyond resistance 156.20.
The GBP/JPY has formed a wedge with the range narrowing which might offer an opportunity to sell into supply for a continuation of what appears to be a fundamentally stacked up bear trend. The Yen has been the best performer and Derek Halpenny commented: “The yen is the best performing major currency…given the sell-off in Asian equities while comments from PM Abe also may be playing a role in dampening optimism over ‘Abenomics’. Moreover, the yen could continue to benefit in a risk averse market as the US Government continues to be partially shutdown for the 7th day running. Research teams at TD Securities said, “Seasonally, October has been one of the best months of the year for the JPY over the past 25 years and with a continuation of US political deadlock, that trend could hold true in the coming days at least”.
GBP/JPY Levels
The 20 DMA is 157.95, the 50 DMA is 154.50 and the 200 DMA is 149.50. RSI (14) reads 34.86. Supports are ascending from 154.15, 154.75, 155.25 and 155.55. Spot is currently 155.89 while resistances are 156.20, 156.60, 157.35, 157.85 and 158.85.
The GBP/JPY has formed a wedge with the range narrowing which might offer an opportunity to sell into supply for a continuation of what appears to be a fundamentally stacked up bear trend. The Yen has been the best performer and Derek Halpenny commented: “The yen is the best performing major currency…given the sell-off in Asian equities while comments from PM Abe also may be playing a role in dampening optimism over ‘Abenomics’. Moreover, the yen could continue to benefit in a risk averse market as the US Government continues to be partially shutdown for the 7th day running. Research teams at TD Securities said, “Seasonally, October has been one of the best months of the year for the JPY over the past 25 years and with a continuation of US political deadlock, that trend could hold true in the coming days at least”.
GBP/JPY Levels
The 20 DMA is 157.95, the 50 DMA is 154.50 and the 200 DMA is 149.50. RSI (14) reads 34.86. Supports are ascending from 154.15, 154.75, 155.25 and 155.55. Spot is currently 155.89 while resistances are 156.20, 156.60, 157.35, 157.85 and 158.85.