7 Jan 2015
GBP/JPY consolidating the downside momentum
FXStreet (Guatemala) - GBP/JPY is currently trading at 180.29 having posted a high in the US session of 180.79 and back off the lows of 179.08, currently 0.40% up on the shift.
GBP/JPY is consolidating the downtrend and Yen's strength when the pair scored recent lows down to 179.08. Sterling has been hit while the BoE are likely needing to take a step back and hold off from acting. Soft data along with soft food prices as well as the drop in oil prices means that it may be a while before the UK’s CPI inflation falls into line with the Central Bank’s 2.0% y/y inflation target.
Sterling at 1.5054 the low pressures the cross while the Yen in its own right has been performing better in a risk off environment. However, the greenback is taking back control and this has allowed the cross a period of consolidation onto the 180 handle with R3 108.48 containing the upside of the channel that has recently formed on the short term charts, trading above the pivot and in neutral territory with RSI (14) at 29 on the daily.
GBP/JPY is consolidating the downtrend and Yen's strength when the pair scored recent lows down to 179.08. Sterling has been hit while the BoE are likely needing to take a step back and hold off from acting. Soft data along with soft food prices as well as the drop in oil prices means that it may be a while before the UK’s CPI inflation falls into line with the Central Bank’s 2.0% y/y inflation target.
Sterling at 1.5054 the low pressures the cross while the Yen in its own right has been performing better in a risk off environment. However, the greenback is taking back control and this has allowed the cross a period of consolidation onto the 180 handle with R3 108.48 containing the upside of the channel that has recently formed on the short term charts, trading above the pivot and in neutral territory with RSI (14) at 29 on the daily.