Currencies: the Sterling Pound-Yen target in the coming months

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Currencies: the Sterling Pound-Yen target in the coming months

Japanese Yen

Japanese Yen

Forex: In the latest macroeconomic data from Japan and easing the tensions that have been seen in recent months between the United States and North Korea are weakening Japan’s currency and the GBP / JPY cross seems to be targeting the highs that have been reached between December 14th and 19th in the region of 147.25.

Yen change to Sterling Pound increases appetite for investor risk

The recent confrontation between the United States and North Korea, seems to have come to a halt, and in international markets, this reflects a very cautious optimism that leads to an increase in risk appetite and the consequent weakening of the yen loses fact that since the beginning of May it commented with an average of 2.11% U.S.

There is something encouraging for the Japanese currency that have reached data indicating that they are under the expectations of inflation numbers, the industrial sector and household consumption, the last point is down at a rate of 1.3% per year.

Trump vs Kim Jong-un

Kim Jong-un vs Trump

Following the continuation of the Bank of Japan’s ultra-expansive policy, whose inflation target of 2% seems to be a long way off even though the general index recorded in March sees an annual growth rate of 0.2%, but against the expected 0.3%. Industrial production registered a monthly of -2.1% vs. the -08% expected.

It seems that the favorable moment for the pound will continue, which has accelerated sharply after the latest announcement by the British Prime Minister Theresa May to the early elections. Last month marked an increase of 3.78% and it seems that the wave of the front has not been completed yet if the current data in the first quarter, The UK GDP is marked as lower against the analysts’ expectations who were expecting a year with + 2.2% instead of 2.1% than it has been recorded.

The GBP / JPY: Exceeding the 144.40 could push the price to 147.25.

The recent break in the triangle that had formed on the daily chart has triggered an acceleration in the steady price hike that has also helped by the upside at the beginning of the week, which currently stands at 143.90 per share.

The downward trend seems to have ended on April 17 with 135.55 which the pair rebounded in the Fibonacci of 50% if we consider that the main upward trend began after the drop we saw last October 7, 2016, and ended for December 15, on the level of 148.40%, a point since also began the downward trend line that forms a fundamental part of the triangle, they remain together in a support zone of 136.40%, making it clear that it could be overcome as we are seeing, but that for the moment will not fall from that minimum.

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