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31 Mar 2014
GBP/JPY quiet ahead of key data
FXStreet (Guatemala) - Currently, GBP/JPY is trading at 171.80, back below the handle but up 0.42% on the day, having posted a daily high at 172.08 and low at 170.98.
GBP/JPY awaits UK PMI’s
RBS strategists noted that Manufacturing PMIs for March are released this week in the UK, and they expect the survey to dip to 56.1 in March, which they said would still represent a high level by historic standards. “While short-term capital flows on "MPC can tighten earlier than expected" conviction can support GBP near-term, the medium term risks for the currency are undoubtedly growing”.
JPY awaits Tankan
The strategists at RBS also noted that the first quarter Tankan survey is released and they anticipate that the survey will show, broadly, that corporate sentiment is improving. “We are well above the consensus expecting non-manufacturers outlook to jump to 25 in 1Q, which may be related to a pull forward of demand in retail industries ahead of the April consumption sales tax hike, which takes effect tomorrow. A new index within the survey, the corporate price outlook, will be released on April 2nd and may prove to be an important input into BoJ policy as it adds a new measure of inflation expectations”. They said they think the survey will largely confirm the BoJ's neutral stance on its current monetary policy, though also said it likely won't stop BoJ officials from noting they will not hesitate to ease further if needed.
GBP/JPY Levels
Spot is presently trading at 171.84, and next resistance can be seen at 172.08 (Daily High), 172.25 (Weekly Classic R1), 172.46 (Daily ClassicR2), 172.78 (Monthly High) and 173.39 (Weekly Classic R2). Support below can be found at 171.78 (Daily Classic R1), 171.51 (Daily Open), 171.45 (Hourly 20 EMA), 171.34 (Yesterday's High) and 171.11(Weekly High).
GBP/JPY awaits UK PMI’s
RBS strategists noted that Manufacturing PMIs for March are released this week in the UK, and they expect the survey to dip to 56.1 in March, which they said would still represent a high level by historic standards. “While short-term capital flows on "MPC can tighten earlier than expected" conviction can support GBP near-term, the medium term risks for the currency are undoubtedly growing”.
JPY awaits Tankan
The strategists at RBS also noted that the first quarter Tankan survey is released and they anticipate that the survey will show, broadly, that corporate sentiment is improving. “We are well above the consensus expecting non-manufacturers outlook to jump to 25 in 1Q, which may be related to a pull forward of demand in retail industries ahead of the April consumption sales tax hike, which takes effect tomorrow. A new index within the survey, the corporate price outlook, will be released on April 2nd and may prove to be an important input into BoJ policy as it adds a new measure of inflation expectations”. They said they think the survey will largely confirm the BoJ's neutral stance on its current monetary policy, though also said it likely won't stop BoJ officials from noting they will not hesitate to ease further if needed.
GBP/JPY Levels
Spot is presently trading at 171.84, and next resistance can be seen at 172.08 (Daily High), 172.25 (Weekly Classic R1), 172.46 (Daily ClassicR2), 172.78 (Monthly High) and 173.39 (Weekly Classic R2). Support below can be found at 171.78 (Daily Classic R1), 171.51 (Daily Open), 171.45 (Hourly 20 EMA), 171.34 (Yesterday's High) and 171.11(Weekly High).