GBP/JPY nesting in on 170.80

FXStreet (Guatemala) - GBP/JPY has drifted to meet resistance at 170.80 post an effort from the bulls to keep hold of the 170 handle following the heavy supply of Yen over the course of the recent price action in USD/JPY.

Strategists at Brown Brothers Harriman explained that the Japanese economy appears to be accelerating this quarter after a lackluster H2 13 with 0.2% expansion in both quarters. “The Tertiary Industry Index rose 0.9% in January, half again higher than expectations following a 0.5% decline in December (initially -0.4%). However, price pressures do appear to have peaked, as BOJ Governor Kuroda previously indicated was going to happen. The domestic corporate price index fell 0.2% in February rather than the 0.2% increase that economists had expected”.

GBP/JPY Levels

The 20 DMA is 170.75, the 50 DMA is 170.35 and the 200 DMA is 160.45. RSI (14) reads 46.97. Supports are ascending from, 168.80, 169.65 and 170.15. Spot is 170.75 while resistances are 171.20, 172.10 172.85, 173.65 and 174.85.