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20 May 2014
GBP/JPY is desperate to recover; 170.80 resistance is under attack
FXStreet (Moscow) - GBP/JPY recovered from the Asian low of 170.50 and climbed to its current levels of 170.74 before Japanese data.
GBP/JPY in recovery mode
GBP/JPY dropped to the bespoke support area of 170.00 on Monday, but recovered into the middle of 170.00-171.00 range by the end of the day. The cross started Tuesday on a positive note as JPY was weakening across the board on the back of positive Japanese stock market developments. The bullish dynamics has been fragile so far as market is waiting for Japan Leading indicators and Department Store sales, published later during Tokyo hours. Both reports are expected to show improvement of Japanese economy, which may limit JPY downside. During European hours keep your eyes peeled for UK inflation numbers as they are going to be key GBP drivers today. The nearest resistance is seen at 170.80, followed by 171.00 while the support is seen at 170.55/50.
What price levels and patterns have to be considered?
Spot is presently trading at 170.76, and next resistance can be seen at 170.81 (Hourly 100 SMA), 170.86 (Daily High), 171.00 (Yesterday's High), 171.12 (Daily Classic R1) and 171.20 (Weekly Classic PP).
Support below can be found at 170.74 (Daily 100 SMA), 170.66 (Daily Open), 170.57 (Monthly Low), 170.57 (Weekly Low) and 170.57 (Hourly 20 EMA).
GBP/JPY in recovery mode
GBP/JPY dropped to the bespoke support area of 170.00 on Monday, but recovered into the middle of 170.00-171.00 range by the end of the day. The cross started Tuesday on a positive note as JPY was weakening across the board on the back of positive Japanese stock market developments. The bullish dynamics has been fragile so far as market is waiting for Japan Leading indicators and Department Store sales, published later during Tokyo hours. Both reports are expected to show improvement of Japanese economy, which may limit JPY downside. During European hours keep your eyes peeled for UK inflation numbers as they are going to be key GBP drivers today. The nearest resistance is seen at 170.80, followed by 171.00 while the support is seen at 170.55/50.
What price levels and patterns have to be considered?
Spot is presently trading at 170.76, and next resistance can be seen at 170.81 (Hourly 100 SMA), 170.86 (Daily High), 171.00 (Yesterday's High), 171.12 (Daily Classic R1) and 171.20 (Weekly Classic PP).
Support below can be found at 170.74 (Daily 100 SMA), 170.66 (Daily Open), 170.57 (Monthly Low), 170.57 (Weekly Low) and 170.57 (Hourly 20 EMA).