GBP/JPY capped 157.95

FXstreet.com (London) - GBP/JPY has performing well, continuing on the bid throughout global sessions this week and has moved to levels not seen since May this year.

For Japan, Q2 GDP was revised up from 2.6% Q/Q annualized to 3.8%. “The government was waiting for these upward revisions before deciding on sales tax increases in October. Economy Minister Amari was speaking after the data suggesting they would need to find at least ¥2tr in government spending to help offset any such sales tax increase”, explained Richard Kelly, Head of European Rates and FX Research at TD Securities. Meanwhile, USD/JPY continues to flirt with the 100 handle but has not held north of there since late July and Sterling shorts were lengthened further ahead of the BoE’s policy meeting last week. “The fact that the MPC choose not to fight back against the upward move in market rates has supported the pound in the spot market”, explained research teams at Rabobank International.

GBP/JPY levels RSI above 70

The 20 DMA is 153.60, the 50 DMA is 152.00 and the 200 DMA is 147.50. RSI (14) reads 82.66. Supports are ascending from 154.15, 154.65, 155.20, 155.20. spot is currently 157.61 while resistances are coming in at 157.95, 158.40 and 158.90.