FXStreet (Guatemala) – GBP/JPY crossed up through the 200 DMA this week and has continued on the bid as the Yen gets a bit of a beating vs the crosses while USD/JPY on the other hand has been a hesitant bid below the 200 SMA on the hourly chart.
Yen crosses have been good performers following through from the risk-on markets earlier this week, but having met a high on the 187 handle, GBP/JPY has made a minor recovery on the bid in a drift from the support below the 10 min 50 SMA at 185.70 and has managed a cent higher throughout European/London markets and holding form in the US session in a more positive risk environment.
The BoE’s sanguine tone today on recent market volatility was also supporting the cross and we also get the BoJ next week and wonder whether it will be the prelude for further easing to come? Derek Halpenny, European Head of GMR at the Bank of Tokyo-Mitsubishi UFJ, Ltd explained:
“Over the last week expectations have been building that the BoJ could ease policy further in autumn in response to the deteriorating outlook for growth and inflation which is helping to dampen scope for the yen to strengthen further in the near-term. As a result market participants will be watching closely comments at next week’s press conference from Governor Kuroda for any potential signal that the BoJ is moving closer to easing policy further before year end which could weigh on the yen.”
(Market News Provided by FXstreet)