GBPJPY, H1
BoE Deputy Governor Ramsden made hawkish remarks in interview in yesterday’s Sunday Times, remarking that “relative to where I was, I see the case for rising interest rates sooner than later.” His comments are all more notable for the fact that Ramsden was one of two dissenters on the MPC who voted against the decision to hike the repo rate last November, to 0.50% from 0.35%, which was the first hike in over 10 years. He said he will be keeping a keep a close eye on what happens though the early part of this year to see if the forecast for wage growth picking up to 3% is realized.
BoJ Governor Kuroda testified in parliament today where he said that the delay in achieving the 2% inflation target is “regrettable” that that while the economy is expanding smoothly persistent stimulative monetary policy is needed. The biggest gainers have been Sterling and the Australian & New Zealand dollars, benefiting from the risk-on sentiment in markets.
GBPJPY rallied over some key moving averages in the overnight session (1). Entry was confirmed at 10:00 149.46 (2) the H1 ATR at 24 suggested Target 1 at 149.70 (3) which was also below the strong resistance of the 200 EMA. A close over this level at 11:00 (+24 pips) triggered a second entry (149.76) for Target 2 (also the ATR 23) and under the key psychological 150.00 at 149.99 (4). A break below the initial entry at 149.45 will negate this move.
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Stuart Cowell
Senior Market Analyst
HotForex
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