Back
9 Sep 2015
GBP/JPY: running into resistance below 186 handle
FXStreet (Guatemala) - GBP/JPY has been on the bid on the back of strong performances on Global stock markets, despite the series of poor data today and recent PMI's in the UK economy leading into the BoE decision and minutes tomorrow where a less hawkish outcome is expected.
The Nikkei was a very strong performer and rallied over 7.5% while being supported on both counts of Abe announcing that they will lower the corporate tax rate by at least 3.3% next year and positive vibes stemming from China.
The China's Shanghai Composite also performed very well and for the second day this week, up 2.4% by the close while the Ministry of Finance promised to strengthen fiscal policy, boost infrastructure spending and speed up reform of its tax system. European markets and US's followed suit, although we have seen a setback on Wall Street as fears mount in the corporate sector on the risk of a Fed hike this month.
GBP/JPY levels
Technically, GBP/JPY is trading on the bid with a backdrop of the hourly golden crosses at 1.5315 in cable and 184.00 for the cross. Sterling is starting to consolidated this upside as MACD approaches positive territory on the daily chart.
The Nikkei was a very strong performer and rallied over 7.5% while being supported on both counts of Abe announcing that they will lower the corporate tax rate by at least 3.3% next year and positive vibes stemming from China.
The China's Shanghai Composite also performed very well and for the second day this week, up 2.4% by the close while the Ministry of Finance promised to strengthen fiscal policy, boost infrastructure spending and speed up reform of its tax system. European markets and US's followed suit, although we have seen a setback on Wall Street as fears mount in the corporate sector on the risk of a Fed hike this month.
GBP/JPY levels
Technically, GBP/JPY is trading on the bid with a backdrop of the hourly golden crosses at 1.5315 in cable and 184.00 for the cross. Sterling is starting to consolidated this upside as MACD approaches positive territory on the daily chart.