Intraday Market Thoughts

GBP Clashes Against JPY

by Ashraf Laidi
Aug 7, 2013 18:33

Sterling may have stolen today's FX headlines, but the yen is the day's biggest performer.  The deteriorating losses in global equities and inevitable start of Fed's tapering have been mentioned as convenient explanations for the yen's rally. Tonight's BoJ decision may also be causing nervousness with regards to the lack of reiterating the central bank's anti-inflationary commitment. The shift in negativity in most yen crosses from daily and weekly charts to converging bearishness in monthly momentum has escalated the debate about he long term sustainability of USDJPY.

We issued a change of bias in our USDJPY stance in today's Premium Insights. But pay close note of the importance to respect the major trendlines, as was seen in late June.  Yesterday's GBPUSD technical signal led us to issue fresh longs despite the event risk from the BoE. But the intensity of JPY gains has neutralised GBPJPY. We issued 2 new trades in GBPUSD, USDJPY, CADJPY, while sticking with the existing trades in AUDJPY, AUDUSD, gold and EURUSD. 4 new charts have also been issued to accompany the trades. All details are in the latest Premium Insights.

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