Forex: GBP/JPY retraces gains despite BoE's Weale words

FXstreet.com (Barcelona) - The market is retracing the Yen selloff seen during Asian hours on account of LDP's Abe Shinzo words in favor of a more intervening BoJ to tackle deflation after the December 16 election. The UK has been delivering news, with the Q3 GDP retracing part of its recession from -0.5% to -0.1%, helped by quarterly growth of 1.0%. The preliminary release of Total Business Investment indicates a rise from 3.1% to 4.5% in Q3 (YoY) boosted by better than expected quarterly data, at +3.7% instead of the +1.3% consensus.

From its daily high at 132.10, the GBPJPY gave in on the London opening and fell back to the 131.45 area. Carney's entry as Governor of BoE is still fresh news and Mervyn King said the central bank is in very good hands. BoE's Weale admitted that the monetary policy might need to be tightened more than previously thought.

Mataf.net analysts point to resistance at 132.05, 132.40 and 133.0, while supports should be found at 131.20, 130.00 and 129.00.