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16 Oct 2014
GBP/JPY consolidating huge swing
FXStreet (Guatemala) - GBP/JPY is trading at 169.63, down -0.01% on the day, having posted a daily high at 169.78 and low at 169.21.
The stronger than expected employment data has done little to bring GBP off its lows. The Yen was taking hold of the pair on a volatile session down to 168.00 but then gave back all of its gains to sterling when it climbed steadily back to 169.60 and consolidated for the rest of the US session and leaves us here changing hands in Asia at current level. The unemployment rate in the UK fell to 6.0%.
"However the market’s inability to react highlights the importance of inflation data over employment data in the current environment. As inflationary pressures fail to materialize the market is pushing out expectations for the first BoE interest hike and weighing on the currency", explained Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank.
GBP/JPY noteworthy levels
Current price is 169.65, with resistance ahead at 169.72 (Hourly 20 EMA) and 170.26. Next support to the downside can be found at 169.61 (Daily Classic PP), 169.30 (Weekly Classic S3), 169.21 and 168.07 (Daily Classic S1).
The stronger than expected employment data has done little to bring GBP off its lows. The Yen was taking hold of the pair on a volatile session down to 168.00 but then gave back all of its gains to sterling when it climbed steadily back to 169.60 and consolidated for the rest of the US session and leaves us here changing hands in Asia at current level. The unemployment rate in the UK fell to 6.0%.
"However the market’s inability to react highlights the importance of inflation data over employment data in the current environment. As inflationary pressures fail to materialize the market is pushing out expectations for the first BoE interest hike and weighing on the currency", explained Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank.
GBP/JPY noteworthy levels
Current price is 169.65, with resistance ahead at 169.72 (Hourly 20 EMA) and 170.26. Next support to the downside can be found at 169.61 (Daily Classic PP), 169.30 (Weekly Classic S3), 169.21 and 168.07 (Daily Classic S1).