GBP JPY began 2 month highs
11/16/2016 11:01:11 AM
The cross in the GBP/JPY started out 2 month high and now flirts with 136.00 handle, amending heavy gains seen over the last 9 trading sessions.
Currently, GBP/JPY trades just about unchanged at 136.00 levels, having met fresh supply near 136.20 region. The GBP/JPY cross fails to maintain at higher levels and turns lower once again, as the recovery in the cable loses momentum, as markets remain to weigh weaker UK CPI report and BOE Carney’s sluggish outlook on the price pressures.
On the JPY-side of the story, a pulls back in the JGB yields caused a fresh selling wave in the JPY, which keeps the sentiment around GBP/JPY sustained slightly. All eyes now remain on the US dataflow, in order to measure additional signs of strength in the US economy, which will have major influence on the USD moves going forward.
The pair has an immediate persistence at 136.20, above which 137.57 could be tested. On the other hand, support is seen at 135.60 that at 135.28.
Fundamental Analysis
by FxErvin
