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Forex: GBP/JPY kept below confluence area 142.90/143.00

The dispute between the two main contenders in the ugly currency contest, that is, the Sterling and the Japanese Yen, is currently headed fractionally by the first from a Friday's/Monday's close-open basis.

Despite the UK downgrade by Moody's, talk that Mr. Kuroda will be appointed the next BoJ chief has moved the pair further away from its recent 1-month low at 141.33 to now stay circa 142.50, Monday's session high.

Technically, the GBP/JPY continues to trade heavy below the 20-EMA on the 4-hour chart, which comes at 142.90, an area of confluence with the major swing low breakout of last Feb 21. If buyers aim to ease the selling pressure, a sustained consolidation above the 142.90/143.00 is required. On the contrary, topside failure may expose recent trend lows.

Forex Flash: NZ-UK rate differential to keep NZD/GBP at highs - BNZ

Heavy NZD/GBP demand limited the downgap in NZD/USD earlier today, says Mike Jones, currency strategist at BNZ. NZD/GBP has risen to around 0.5540 – a new post float high, with Mike predicting "further gains likely", noting that "pressure on the BoE to rescue the UK is mounting and NZ-UK interest rate differentials are likely to keep moving higher."
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