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7 Oct 2013
GBP/JPY lower on Abe comments?
FXstreet.com (London) - GBP/JPY dropped into the day lower from 156.20 territory and opened in the 155.40’s but is moving higher to close the gap against a strong bearish trend set up on Thursday.
The Yen has been the best performer and Derek Halpenny commented: “The yen is the best performing major currency this morning given the sell-off in Asian equities while comments from PM Abe also may be playing a role in dampening optimism over ‘Abenomics’. In an interview with the FT PM Abe stated that labour market reform would not be part of his initial focus of reform as there is strong domestic opposition to this “sensitive” area of economic policy. This is understandable to a degree – PM Abe has to proceed with caution in order to keep the LDP unified and hence the more contentious issues don’t necessarily have to be dealt with immediately. However, there is also an argument that PM Abe should take advantage of his electoral popularity while he has it to push for aggressive reform. Also given the importance of rising nominal wages for ridding Japan of deflation, this issue will have to be addressed”.
GBP/JPY Levels
The 20 DMA is 157.95, the 50 DMA is 154.50 and the 200 DMA is 149.50. RSI (14) reads 34.86. Supports are ascending from 154.15, 154.75, 155.25 and 155.55. Spot is currently 155.79 while resistances are 157.35, 157.85 and 158.85.
The Yen has been the best performer and Derek Halpenny commented: “The yen is the best performing major currency this morning given the sell-off in Asian equities while comments from PM Abe also may be playing a role in dampening optimism over ‘Abenomics’. In an interview with the FT PM Abe stated that labour market reform would not be part of his initial focus of reform as there is strong domestic opposition to this “sensitive” area of economic policy. This is understandable to a degree – PM Abe has to proceed with caution in order to keep the LDP unified and hence the more contentious issues don’t necessarily have to be dealt with immediately. However, there is also an argument that PM Abe should take advantage of his electoral popularity while he has it to push for aggressive reform. Also given the importance of rising nominal wages for ridding Japan of deflation, this issue will have to be addressed”.
GBP/JPY Levels
The 20 DMA is 157.95, the 50 DMA is 154.50 and the 200 DMA is 149.50. RSI (14) reads 34.86. Supports are ascending from 154.15, 154.75, 155.25 and 155.55. Spot is currently 155.79 while resistances are 157.35, 157.85 and 158.85.