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10 Sep 2013
GBP/JPY spikes on 156.56 after BoJ minutes
FXstreet.com (Athens)- The GBP/JPY is trading the upper level on boosting risk-sentiment as well as on the fact that war jitters in Syria fading away.
Will GBP/JPY manage to sustain its gains and touch 2009 high as of 163.00 level?
UK Chancellor Osborne said that UK is in early stages of recovery, while premature tightening could do harm. Thus, “sterling” boosted across the board but not against the single currency. The common currency seems to find support on a couple of reasons, but most of all due to the fact that UK Foreign Secretary Hague said that ”UK and US share revulsion over the Syria attack, during joint press conference with US's Kerry.” Last but not least, there were beating data on behalf of Japan the last two days as well as more than encouraging statements on behalf of Japanese officials. In the August minutes that released earlier from the BoJ officials supported Abenomics, saying that “stimulus effects firmly taking hold, positive responses seen in the economy “ as well as “Important to maintain fiscal credibility”. Last but not least, On another front the yen fell across the board as Tokyo was has won the competition to host the Olympics. This boosted the Nikkei to a 5 week high as traders took on more risk and sold the safe heaven Japanese currency.
Technical Perspective and Outlook on GBP/JPY
It is possible that the pair paves the way to set up a strong rally to 2009 high of 163.00. Of course the aggressive target to be achieved, apart from continuation of boosting UK fundamental data and a risk-appetite mood, also needs to overcome the crucial hurdle of May’s high (156.75). All in all, the multi-month consolidation pattern seems to be touching its end.
Will GBP/JPY manage to sustain its gains and touch 2009 high as of 163.00 level?
UK Chancellor Osborne said that UK is in early stages of recovery, while premature tightening could do harm. Thus, “sterling” boosted across the board but not against the single currency. The common currency seems to find support on a couple of reasons, but most of all due to the fact that UK Foreign Secretary Hague said that ”UK and US share revulsion over the Syria attack, during joint press conference with US's Kerry.” Last but not least, there were beating data on behalf of Japan the last two days as well as more than encouraging statements on behalf of Japanese officials. In the August minutes that released earlier from the BoJ officials supported Abenomics, saying that “stimulus effects firmly taking hold, positive responses seen in the economy “ as well as “Important to maintain fiscal credibility”. Last but not least, On another front the yen fell across the board as Tokyo was has won the competition to host the Olympics. This boosted the Nikkei to a 5 week high as traders took on more risk and sold the safe heaven Japanese currency.
Technical Perspective and Outlook on GBP/JPY
It is possible that the pair paves the way to set up a strong rally to 2009 high of 163.00. Of course the aggressive target to be achieved, apart from continuation of boosting UK fundamental data and a risk-appetite mood, also needs to overcome the crucial hurdle of May’s high (156.75). All in all, the multi-month consolidation pattern seems to be touching its end.