GBPJPY

GBPJPY
SHORT position at 208.00
STOP LOSS above 208.50 (-50 pips).
THE TARGETS are 207.80 / 207.50 / 207.30 / 207.00
OP, SL & TP at your own risks

GBPJPY . GBPUSD . USDJPY

GBP JPY should find a resistance below 208.00.

GBP USD is in a range between 1.9725 and 1.9845.

USD JPY is in a consolidation after the last bullish movement and should find a resistance below 105.50..

FOREX NEWS

Dollar Advances as Durable Goods Measure Unexpectedly Rises

May 28 (Bloomberg) -- The dollar reached a two-week high against the yen as a measure of U.S. durable goods orders unexpectedly increased, signaling the outlook for the world's biggest economy may improve.

Japan's currency touched a one-month low against the euro and the weakest since November versus the Australian dollar, reaching the day's lowest levels as an earlier decline in crude oil spurred investors to buy higher-yielding assets funded in Japan's currency, in a strategy known as the carry trade. The yen pared its drop as oil trimmed its decline.

``There's room for the dollar to gain,'' said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank in New York. ``Lower oil prices definitely removed one of the risk factors for the U.S. economy.''

The U.S. currency climbed to 104.73 yen at 10:14 a.m. in New York, from 104.24, and reached the strongest since May 14. The U.S. currency strengthened to $1.5661 per euro from $1.5691, paring its decline this year to 6.8 percent. The yen fell to 164 per euro from 163.58 yesterday, and touched the weakest since April 24.

Orders for U.S. durable goods orders excluding transportation equipment rose 2.5 percent in April, while the median forecast in a Bloomberg survey was for a 0.5 percent drop. Overall orders fell 0.5 percent, after a 0.3 percent drop in March, the Commerce Department said.

Futures on the Chicago Board of Trade showed a 30 percent chance the Fed will raise its target rate by a quarter- percentage point to 2.25 percent on Sept. 16, up from 21 percent a week ago.

Yen and Aussie

Crude oil for July delivery was little changed at about $128 a barrel, after earlier dropping as much as 2.2 percent to $125.96 a barrel on the New York Mercantile Exchange. That was the lowest since May 19.

The Japanese currency touched 100.80 per Australian dollar, the weakest since Nov. 14, from 99.91 yesterday.

In the carry trade, investors get funds in a country with low borrowing costs and invest where rates are higher, earning the difference. The risk is that currency moves erode the profit from the rate differential. Japan's benchmark rate is 0.5 percent, the lowest among major economies. Australia's is 7.25 percent.

The euro pared its drop after a report showed inflation in Germany, Europe's largest economy, accelerated more than forecast in May.

ECB Benchmark

German consumer prices rose 3 percent this month from a year ago after rising 2.6 percent last month, when measured using a harmonized European Union method, the Federal Statistics Office said. The median forecast in a Bloomberg News survey was for inflation to quicken to 2.9 percent. A separate report showed French consumer confidence dropped to a record low in May.

The European Central Bank has kept its main interest rate at 4 percent since June 2007.

Royal Bank of Scotland Plc recommended investors buy the euro against the dollar, after the company last week pushed back its forecast for the timing of an ECB rate cut to the second quarter of next year.

``Oil-related stagflation worries will play moderately positively for the euro,'' strategists led by David Simmonds, global head of currency research at the U.K.'s second-biggest lender, wrote in a research note yesterday.

Europe's single currency may rise to $1.60 by the end of June, the bank forecast.

Treasury Sales

The dollar also rose against the yen as the Treasury prepared to sell $30 billion of two-year notes today and $19 billion of five-year debt tomorrow. The U.S. currency appreciated 0.3 percent against the yen when the government sold $30 billion of two-year securities on April 23.

``There could be quite a lot of dollar-buying interest as the day progresses,'' said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. ``There should be reasonable demand for U.S. government debt.''

Japan, the largest foreign owner of Treasury securities, increased its holdings by $14.1 billion to $600.7 billion in March, according to the Treasury Department.