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12 Jun 2013
GBP/JPY cross drifting lower again in European trade
FXstreet.com (London) - With the yes rally yesterday, the GBP/JPY tumbled to par Mondays gap in the charts, but the pound clawed those losses back over night to find resistance in European trade this morning at 152.06
GBP/JPY will be affected in a yen safe haven environment
We should not forget the yens safe haven status in an environment where there is a great deal of volatility in EM’s, and concerns over the Abenomics. The yens move of late has been about global risk aversion, which strengthened when the BOJ disappointed with its unchanged monetary stance.
Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ, Ltd said the USD/JPY is at the mercy of general risk appetite and further volatility in emerging markets that reduces risk appetite further could see the yen strengthen again. He added it is notable though that the authorities do appear to now be making greater efforts to stabilise FX markets. “Indonesia, Poland and Brazil all intervened yesterday in efforts to support their domestic currencies”. Tomorrow we see foreign investment flows for Japanese bond and socks, and coming up for the UK we are awaiting the UK – Labour Market Report at 08.30GMT
Technically, USD/JPY effecting GBP/JPY
USD/JPY looks like a triangular pattern playing out. The yen stalled ahead of the base of the daily cloud at 95.45 which remains support on a closing basis, with last Fridays lows of 94.95 just below. Below sights 93.00 and 92.50 if resistance holds up before 96.50 the pair remain to look heavy. Cable is pushing higher but 1.5665 1.5685 1.5705 200 dma acting as resistance lines. Teams at ICN.com said the cross remained stable below 151.80 keeping the downside intraday move expectations valid waiting for targets that starts at 150.00 and extends towards 147.65 levels. They say breaching 151.80 will halt our bearish outlook.
GBP/JPY will be affected in a yen safe haven environment
We should not forget the yens safe haven status in an environment where there is a great deal of volatility in EM’s, and concerns over the Abenomics. The yens move of late has been about global risk aversion, which strengthened when the BOJ disappointed with its unchanged monetary stance.
Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ, Ltd said the USD/JPY is at the mercy of general risk appetite and further volatility in emerging markets that reduces risk appetite further could see the yen strengthen again. He added it is notable though that the authorities do appear to now be making greater efforts to stabilise FX markets. “Indonesia, Poland and Brazil all intervened yesterday in efforts to support their domestic currencies”. Tomorrow we see foreign investment flows for Japanese bond and socks, and coming up for the UK we are awaiting the UK – Labour Market Report at 08.30GMT
Technically, USD/JPY effecting GBP/JPY
USD/JPY looks like a triangular pattern playing out. The yen stalled ahead of the base of the daily cloud at 95.45 which remains support on a closing basis, with last Fridays lows of 94.95 just below. Below sights 93.00 and 92.50 if resistance holds up before 96.50 the pair remain to look heavy. Cable is pushing higher but 1.5665 1.5685 1.5705 200 dma acting as resistance lines. Teams at ICN.com said the cross remained stable below 151.80 keeping the downside intraday move expectations valid waiting for targets that starts at 150.00 and extends towards 147.65 levels. They say breaching 151.80 will halt our bearish outlook.