GBPJPY – British Pound Bearish Bias Remains Intact Vs Japanese Yen
Aayush Jindal
Key Highlights
The British Pound downside pressure accelerated below 140.00 against the Japanese yen.
There are two bearish trend lines with resistance at 139.60 and 140.20 on the 4-hours chart of GBPJPY.
The Japanese Labor Cash Earnings for Jan 2017 (YoY) released by the Ministry of Health, Labour and Welfare registered a rise of 0.5%.
In the UK, the RICS Housing Price Balance for Feb 2017 released by the Royal Institution of Chartered Surveyors posted a rise of 24%, compared with the +23% forecast.
GBPJPY Technical Analysis
The British Pound failed to remain in the bullish zone vs the Japanese yen, and moved below 140.00. The GBPJPY pair is now facing many resistances on the upside near 139.60, and looking to extend downsides.On the upside, an initial resistance is near a bearish trend line at 139.60 on the 4-hours chart. However, the most important one is near 140.20. It coincides with the second bearish trend line, and the 100 simple moving average (H4).On the downside, the pair may look to trade close to the 1.236 extension of the last wave from the 138.82 low to 140.75 high at 138.27.
Japanese Labor Cash Earnings
Today, the Japanese Labor Cash Earnings for Jan 2017 (YoY) was released by the Ministry of Health, Labour and Welfare. The market was looking for a minor increase of 0.3% in Jan 2017, compared with the same month a year ago.The result was a bit on the higher side, as there was an increase of 0.5%. However, there was no major reaction in the Japanese yen pairs like USDJPYand GBPJPY.
UK’s RICS Housing Price Balance
In the UK earlier today, the RICS Housing Price Balance for Feb 2017 released by the Royal Institution of Chartered Surveyors. The market was expecting the housing costs in the UK to increase by 23% in Feb 2017.The result was better, as there was a rise of 24%. The report highlighted that “Around one-third of respondents say homeless people and those on housing benefits are being pushed out of private rental market”.The British Pound is currently trading a few pips higher, but there are many hurdles for GBPJPY waiting on the upside like 139.60 to act as a resistance.
On the upside, an initial resistance is near a bearish trend line at 139.60 on the 4-hours chart. However, the most important one is near 140.20. It coincides with the second bearish trend line, and the 100 simple moving average (H4).On the downside, the pair may look to trade close to the 1.236 extension of the last wave from the 138.82 low to 140.75 high at 138.27.