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GBP/JPY capped by 150.28 resistance

FXstreet.com (Chicago) - GBP/JPY continued to give in as price was unable to break through 150.28 resistance.

Earlier in Japan, the Cabinet Office published its leading economic index at 107.0 vs. expected 108.0 and previous 110.7. Likewise, the organization released its coincident index measuring the current state of the economy. The results slightly outperformed expectations as 105.2 exceeded 105.1. In the UK, industrial and manufacturing production data surpassed projections at 1.2% vs. 0.6% for industrial and 2.0% vs. estimated 0.9% manufacturing data.

Price action indicated a steady decline for a total of 0.50% daily losses. Trading at 150.13, the pair oscillated between supports at 149.90 (intraday lows), 149.64 (July 15 lows), 149.41 (July 13 lows) and resistances at 150.28 (August 2 lows), 150.72 (August 1st highs), 151.02 (July 29 highs). According to the FXstreet trend index, the pair was slightly bearish on one-hour timeframe analysis with a MACD indicator pointing down.

Flash: Is GBP/USD undervalued heading into BoE? – BMO Capital Markets

The current net short positioning in the GBP based on CFTC data alone appears to be a remnant of two things, primarily: the early 2013 GBP sell-off and the embedded GBP weakness inspired by the July BoE statement alongside the concurrent slump in UK rates, suggests Greg Anderson, Global Head of FX Strategy at BMO Capital Markets.
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