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24 Feb 2014
GBP/JPY squeezed on more cable offers
FXStreet (Guatemala) - GBP/JPY has fallen from 170.80 again at 170.60 tripping sell stops at 170.40 to the handle.
The yen strengthened in the Asian trading session over concerns for the outlook for the Chinese economy. The Shanghai Composite equity index sank to a 2 week low by around 1.8% overnight and this has been noted in North America markets also. Meanwhile, Sterling has continued on the offer despite poor data releases from the US. Composite services PMI fell in Feb to 53.5 versus 56.2 in January and this reads as the lowest since October 2013. There are rumours lingering around cable with a large corporate weighing on the pair with follow through flows from Friday’s fixing which might explain its strange behaviour.
GBP/JPY Levels
The 20 DMA is 168.90, the 50 DMA is 170.35 and the 200 DMA is 159.40. RDI (14) reads 42.71. Supports are ascending from 168.30, 168.60,169.10, 169.70, 170.15. Spot is 170.28 while resistances are 170.60/80, 171.10, 171.35 172.30, 173.65 and 173.95.
The yen strengthened in the Asian trading session over concerns for the outlook for the Chinese economy. The Shanghai Composite equity index sank to a 2 week low by around 1.8% overnight and this has been noted in North America markets also. Meanwhile, Sterling has continued on the offer despite poor data releases from the US. Composite services PMI fell in Feb to 53.5 versus 56.2 in January and this reads as the lowest since October 2013. There are rumours lingering around cable with a large corporate weighing on the pair with follow through flows from Friday’s fixing which might explain its strange behaviour.
GBP/JPY Levels
The 20 DMA is 168.90, the 50 DMA is 170.35 and the 200 DMA is 159.40. RDI (14) reads 42.71. Supports are ascending from 168.30, 168.60,169.10, 169.70, 170.15. Spot is 170.28 while resistances are 170.60/80, 171.10, 171.35 172.30, 173.65 and 173.95.