The British Pound declined recently and settled below a major support at 146.20 against the Japanese Yen.
There is a key bearish trend line in place with resistance at 146.90 on the 4-hours chart of GBP/JPY.
Recently in the UK, the CBI Industrial Trends Index increased from -3 to 13 in June 2018.
Today in the UK, the BOE interest rate decision is lined up and the central back is likely to keep rates at 0.5%.
GBPJPY Technical Analysis
The British Pound faced a solid selling interest near 148.00 recently against the Japanese Yen. The GBP/JPY pair started a downside move and broke a major support at 146.20.Looking at the 4-hours chart, there was a rejection noted from the 148.00 resistance zone. The pair is now trading well below 147.00, 100 (red) and 200 (green) simple moving average (4-hour).There was even a break below the 50% fib retracement level of the last wave from the 143.21 low to 148.11 high, which is a bearish sign.Recently, the pair traded close to the 144.30 support and tested the 76.4% fib retracement level of the last wave from the 143.21 low to 148.11 high. It is currently consolidating losses and it could correct a bit in the near term.However, there are many resistances on the upside around the 146.00 and 146.20 level. Moreover, there is a key bearish trend line in place with resistance at 146.90 on the 4-hours chart of GBP/JPY.Therefore, any major recoveries from the current levels are likely face a strong selling interest above the 146.00 level. On the downside, supports are at 144.50 and 144.30.
Economic Releases to Watch Today
Swiss Trade Balance for May 2018 – Forecast 1,890M, versus 2,289M previous.
BoE Interest Rate Decision - Forecast 0.50%, versus 0.50% previous.
US Initial Jobless Claims - Forecast 220K, versus 218K previous.
US House Price Index for April 2018 (MoM) - Forecast +0.3%, versus +0.1% previous.
Looking at the 4-hours chart, there was a rejection noted from the 148.00 resistance zone. The pair is now trading well below 147.00, 100 (red) and 200 (green) simple moving average (4-hour).There was even a break below the 50% fib retracement level of the last wave from the 143.21 low to 148.11 high, which is a bearish sign.Recently, the pair traded close to the 144.30 support and tested the 76.4% fib retracement level of the last wave from the 143.21 low to 148.11 high. It is currently consolidating losses and it could correct a bit in the near term.However, there are many resistances on the upside around the 146.00 and 146.20 level. Moreover, there is a key bearish trend line in place with resistance at 146.90 on the 4-hours chart of GBP/JPY.Therefore, any major recoveries from the current levels are likely face a strong selling interest above the 146.00 level. On the downside, supports are at 144.50 and 144.30.