GBPJPY – More Upsides Likely Post JPN Securities Investment
Aayush Jindal
Key Highlights
British Pound traded higher against the Japanese Yen, and looks set for more gains moving ahead.
Japanese Securities investment, released by Ministry of Finance posted a reading of ¥119.8B, up from the last revised reading of ¥-26.2B.
Moreover, the Japanese Foreign investment in Japan stocks came in at ¥-2.8B.
In Australian, the Employment Change released by the Australian Bureau of Statistics posted a gain of 38.5K, compared with the expectation of 15.0K in July 2015.
GBPJPY Technical AnalysisThe GBPJPY climbed higher Intraday, as buyers gained traction after a rejection around 193.00. The pair surged and cleared an important flag pattern formed on the 4-hours chart to open the doors for more gains in the near term. The upside move found resistance around the 195.00-20 area.The pair is currently correcting lower, and might trade close to the 38.2% Fib retracement level of the last wave from 193.03 low to 195.20 high. However, the most important support area is around the 50% Fib retracement level. Moreover, the broken flag trend line could also act as a support, as it is coinciding with the 100 simple moving average (H4).On the upside, a break above 195.20 could take the pair towards the next barrier which is around the 195.50 area. The H4 RSI is well above the 50 mark, suggesting that buyers are in control.Australian Employment ReportEarlier during the Asian session, the Employment Change, which is a measure of the change in the number of employed people in Australia was released by the Australian Bureau of Statistics. The market was expecting an increase of 15.0K in July 2015. However, the outcome was on the higher side, as the Employment Change came in at 38.5K. There was a negative side of the story, as the Australian Unemployment Rate climbed higher from the previously revised level of 6.1 to 6.3% in July 2015.The report highlighted that the “seasonally adjusted number of people unemployed increased by 40,100 to 800,700, and the labour force participation rate increased 0.3 percentage points to 65.1 per in July 2015”. The Aussie Dollar was under pressure after the release, as the AUDUSD pair dived by more than 50 pips and trimmed most of its gains.
The pair is currently correcting lower, and might trade close to the 38.2% Fib retracement level of the last wave from 193.03 low to 195.20 high. However, the most important support area is around the 50% Fib retracement level. Moreover, the broken flag trend line could also act as a support, as it is coinciding with the 100 simple moving average (H4).On the upside, a break above 195.20 could take the pair towards the next barrier which is around the 195.50 area. The H4 RSI is well above the 50 mark, suggesting that buyers are in control.Australian Employment ReportEarlier during the Asian session, the Employment Change, which is a measure of the change in the number of employed people in Australia was released by the Australian Bureau of Statistics. The market was expecting an increase of 15.0K in July 2015. However, the outcome was on the higher side, as the Employment Change came in at 38.5K. There was a negative side of the story, as the Australian Unemployment Rate climbed higher from the previously revised level of 6.1 to 6.3% in July 2015.The report highlighted that the “seasonally adjusted number of people unemployed increased by 40,100 to 800,700, and the labour force participation rate increased 0.3 percentage points to 65.1 per in July 2015”. The Aussie Dollar was under pressure after the release, as the AUDUSD pair dived by more than 50 pips and trimmed most of its gains.
The pair is currently correcting lower, and might trade close to the 38.2% Fib retracement level of the last wave from 193.03 low to 195.20 high. However, the most important support area is around the 50% Fib retracement level. Moreover, the broken flag trend line could also act as a support, as it is coinciding with the 100 simple moving average (H4).On the upside, a break above 195.20 could take the pair towards the next barrier which is around the 195.50 area. The H4 RSI is well above the 50 mark, suggesting that buyers are in control.Australian Employment ReportEarlier during the Asian session, the Employment Change, which is a measure of the change in the number of employed people in Australia was released by the Australian Bureau of Statistics. The market was expecting an increase of 15.0K in July 2015. However, the outcome was on the higher side, as the Employment Change came in at 38.5K. There was a negative side of the story, as the Australian Unemployment Rate climbed higher from the previously revised level of 6.1 to 6.3% in July 2015.The report highlighted that the “seasonally adjusted number of people unemployed increased by 40,100 to 800,700, and the labour force participation rate increased 0.3 percentage points to 65.1 per in July 2015”. The Aussie Dollar was under pressure after the release, as the AUDUSD pair dived by more than 50 pips and trimmed most of its gains.