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7 Jan 2015
GBP/JPY: Fundamentals weighing in on the cross
FXStreet (Guatemala) - GBP/JPY has been on its knee’s on two accounts.
The Yen is strong on the back of risk aversion and concerns over global growth, taking the greenback down to look at key 118Yen while Sterling in its own right was punished and making a 17-month low of 1.5151 post the disappointments in the UK’s Markit Services PMI for December. This number read as 51.6 and was the poorest seen in nearly two years.
Technically, 179.00 offers a strong support line although below here, we are open to a full figure lower before any reasonable demand would defend prospects for 174.80 medium term, playing through the levels on handles between there and here. 179.22 20 EMA marks support ahead of 175.77 and the 220 EMA before 174.91 (50 EMA). To the upside, fundamentals would need to play their pair and a change there of.
The Yen is strong on the back of risk aversion and concerns over global growth, taking the greenback down to look at key 118Yen while Sterling in its own right was punished and making a 17-month low of 1.5151 post the disappointments in the UK’s Markit Services PMI for December. This number read as 51.6 and was the poorest seen in nearly two years.
Technically, 179.00 offers a strong support line although below here, we are open to a full figure lower before any reasonable demand would defend prospects for 174.80 medium term, playing through the levels on handles between there and here. 179.22 20 EMA marks support ahead of 175.77 and the 220 EMA before 174.91 (50 EMA). To the upside, fundamentals would need to play their pair and a change there of.