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4 Oct 2013
GBP/JPY extends take off consolidating 157.20
FXstreet.com (Chicago) - GBP/JPY was shaken up and down on release of updates regarding the BoJ’s interest rate decision. Consolidating a short-term bullish channel from session lows at 156.87, bulls remain held back by 157.30 zone targeting 158.
No change in policy
On unanimous vote, the BoJ decided, not surprisingly, to maintain its monetary policy. From official bank report “The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen.” “Japan’s economy is recovering moderately” and expectations are set to “continue a moderate recovery”. “The bank will continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2 percent”. Current interest rate is at 0.1%.
GBP/JPY Technical Levels
Technically speaking, the pair trades at 157.19 and oscillates between supports aligned at 156.95 (September 30th lows), 156.42 (September 16th highs) ahead of 155.53 (September 27th lows) and the resistances set at 157.39 (September 13th lows), 157.90 (September 4th highs) followed by 158.24 (September 9th lows). Chris Capre, Founder at 2ndSkies states "now the pair is sitting right on top of the 156.50 level we discussed and has sold off for 3 days straight, but holding. Bulls who want to get long can look for intraday price action buy signals here, targeting 158 and 159.75. Bears can wait for a breakout retest setup should this support level collapse. Another alternative for bears is selling on a corrective pullback to 160."
No change in policy
On unanimous vote, the BoJ decided, not surprisingly, to maintain its monetary policy. From official bank report “The Bank of Japan will conduct money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen.” “Japan’s economy is recovering moderately” and expectations are set to “continue a moderate recovery”. “The bank will continue with quantitative and qualitative monetary easing, aiming to achieve the price stability target of 2 percent”. Current interest rate is at 0.1%.
GBP/JPY Technical Levels
Technically speaking, the pair trades at 157.19 and oscillates between supports aligned at 156.95 (September 30th lows), 156.42 (September 16th highs) ahead of 155.53 (September 27th lows) and the resistances set at 157.39 (September 13th lows), 157.90 (September 4th highs) followed by 158.24 (September 9th lows). Chris Capre, Founder at 2ndSkies states "now the pair is sitting right on top of the 156.50 level we discussed and has sold off for 3 days straight, but holding. Bulls who want to get long can look for intraday price action buy signals here, targeting 158 and 159.75. Bears can wait for a breakout retest setup should this support level collapse. Another alternative for bears is selling on a corrective pullback to 160."