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7 Oct 2013
GBP/JPY tanking early Monday as investors flock to the Yen for safety
FXstreet.com (Barcelona) - Traders are expressing their disappointment in the lack of good news out of the US this weekend. Funds are flowing into the Yen and out of anything perceived as risky – which is pressuring GBP/JPY lower.
GBP/JPY traders to trade off technicals, sentiment and news flow this week
Technical support may spur on some short-term buying of GBP/JPY at some point soon (see below); the global attitude toward risk will clearly influence the flows in and out of the Yen; and, the following data points have the potential to move the cross later this week:
• Monday – BOJ Monthly Economic Survey; Japanese Leading Economic Index and Coincident Index;
• Tuesday – Japanese Trade Balance; Japanese Eco Watchers Survey
• Wednesday – BOJ Meeting Minutes; BOJ Governor Nakaso speech; Japanese Machine Tool Orders; BOE Credit Conditions; British Industrial Production; British Manufacturing Production; British Trade Balance; British GDP estimate;
• Thursday – Japanese Bank Lending; Japanese Foreign Investment; Japanese Machinery Orders; Japanese Tertiary Index; Japanese Consumer Confidence; BOJ Governor Kuroda speech; BOE interest rate decision and asset purchase facility announcements;
• Friday – British Leading Economic Index;
Technical outlook for GBP/JPY
Technicians say the next downside target on GBP/JPY’s 60-minute chart is 155.40 – at which point a bounce may very well occur. Resistance on that bounce should come in at 156.31 – estimated Fibonacci resistance.
GBP/JPY traders to trade off technicals, sentiment and news flow this week
Technical support may spur on some short-term buying of GBP/JPY at some point soon (see below); the global attitude toward risk will clearly influence the flows in and out of the Yen; and, the following data points have the potential to move the cross later this week:
• Monday – BOJ Monthly Economic Survey; Japanese Leading Economic Index and Coincident Index;
• Tuesday – Japanese Trade Balance; Japanese Eco Watchers Survey
• Wednesday – BOJ Meeting Minutes; BOJ Governor Nakaso speech; Japanese Machine Tool Orders; BOE Credit Conditions; British Industrial Production; British Manufacturing Production; British Trade Balance; British GDP estimate;
• Thursday – Japanese Bank Lending; Japanese Foreign Investment; Japanese Machinery Orders; Japanese Tertiary Index; Japanese Consumer Confidence; BOJ Governor Kuroda speech; BOE interest rate decision and asset purchase facility announcements;
• Friday – British Leading Economic Index;
Technical outlook for GBP/JPY
Technicians say the next downside target on GBP/JPY’s 60-minute chart is 155.40 – at which point a bounce may very well occur. Resistance on that bounce should come in at 156.31 – estimated Fibonacci resistance.