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11 Jun 2014
GBP/JPY downside stalling although doves take flight
FXStreet (Guatemala) - GBP/JPY is trading at 171.29, down -0.11% on the day, having posted a daily high at 171.82 and low at 170.95.
GBP/JPY is making hard work of the downside for the bears while UK data has come back into positive territory although marks a dovish score on the outlook from the BoE. Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained, "while these figures suggest the UK labor market is tightening, the major piece of contrary evidence is that average weekly earnings (reported on a 3-month year-over-year basis) slipped to 0.7% from a revised 1.9% in March (reported with an extra month lag). The lack of upward pressure on earnings suggests that whatever slack has been absorbed in the labor market, it is not yet sufficient to boost wages." He added, "The absence of wage pressures gives the BOE great latitude in maintaining low interest rates”
GBP/JPY Levels
Spot is presently trading at 171.33, and next resistance can be seen at 171.34 (Hourly 20 EMA), 171.35 (Yesterday's Low), 171.51 (Daily Open), 171.51 (Weekly Low) and 171.56 (Daily 20 SMA). Next support to the downside can be found at 171.12 (Daily Classic S1), 170.95 (Daily Low), 170.91 (Weekly Classic S1), 170.73 (Daily Classic S2) and 170.68 (Daily 100 SMA).
GBP/JPY is making hard work of the downside for the bears while UK data has come back into positive territory although marks a dovish score on the outlook from the BoE. Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained, "while these figures suggest the UK labor market is tightening, the major piece of contrary evidence is that average weekly earnings (reported on a 3-month year-over-year basis) slipped to 0.7% from a revised 1.9% in March (reported with an extra month lag). The lack of upward pressure on earnings suggests that whatever slack has been absorbed in the labor market, it is not yet sufficient to boost wages." He added, "The absence of wage pressures gives the BOE great latitude in maintaining low interest rates”
GBP/JPY Levels
Spot is presently trading at 171.33, and next resistance can be seen at 171.34 (Hourly 20 EMA), 171.35 (Yesterday's Low), 171.51 (Daily Open), 171.51 (Weekly Low) and 171.56 (Daily 20 SMA). Next support to the downside can be found at 171.12 (Daily Classic S1), 170.95 (Daily Low), 170.91 (Weekly Classic S1), 170.73 (Daily Classic S2) and 170.68 (Daily 100 SMA).