GBP/JPY: Pound Is Growing
Mayzus | Oct 07, 2015 12:48PM ET
The pound strengthened against the yen prior to the Bank of Japan Press Conference and key macroeconomic statistics due on Thursday. Economists do not expect any additional stimulus measures from the regulator despite the slow economy recovery. At the same time, uncertainty regarding its further action is expected to increase and that would pressure the yen.
In addition, the Bank of England Minutes and its Interest-Rate Decision are due on Thursday. Markets do not expect monetary policy tightening this week, but the regulators' commentaries could be very optimistic.
Bollinger Bands® on the daily chart is falling, while the price range is narrowing. MACD is growing and giving a strong buy signal. Stochastic is also growing but is about to approach the overbought zone that could indicate a growth slowdown in the short-term.
The indicators recommend waiting for clearer trading signals.
- Support levels: 182.46, 182.00 (psychologically important level), 181.31, 180.39 (7 September low), 180.00, 179.50.
- Resistance levels: 183.32 (local high), 184.17 (25 September high), 185.00, 186.26, 187.32, 188.26 (17 September high).
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