00:54 GBP/JPY: Boost Overnight On Ebbing BoE Lending Facility Demand Tokyo, September 27. The lack of bidding interest for the BoE"s offer to GBP10 bln in three-month funds at the penalty rate of 6.75% overnight saw GBP/JPY surge. Dealers took the lack of funding interest that subprime woes affecting the UK credit markets had subsided. For a market recently obsessed with negative news out of the UK, the development sent shock waves through the GBP market with many players scrambling to cover shorts. GBP/JPY traded up above 233 for a time before pulling back, At 232.55/65 currently, it is still relatively well bid vis-a-vis the lows sometimes below 230 seen recently. Technically, the cross has moved back into its Ichimoku cloud between 232.40-235.25 today, and could test the top near-term, which roughly corresponds to the 235 or so double top seen on September 5 and 13 (234.80, to be more exact). Support at the Ichimoku tenkan and kijun lines have been reaffirmed as well. The tenkan is at 231.26 today and the kijun at 230.65. [email protected]
![](https://resources.faireconomy.media/images/emojis/64/1f60e.png?v=15.1)