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GBPJPY – A Look At The Big Picture

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Aayush Jindal

GBPJPY – A Look At The Big Picture

Key Highlights

  • British Pound recent slide against the Japanese yen got extended, as the GBPJPY pair moved below 140.00.
  • During the recent downside move, the pair broke a major support trend line on the monthly chart, which is a sign that it was a crucial move.
  • Today in Japan, the Retail Trade released by the Ministry of Economy, Trade and Industry posted a decrease of 1.9% in May 2016, compared with the forecast of -1.6%.
  • In the UK today, the Consumer Credit figure will be released by the Bank of England, which is forecasted to come in at £1.400B.

GBPJPY Technical Analysis

The British pound after the Brexit news collapsed against most major currencies, including the Japanese Yen. If we look at a higher time frame chart like monthly, then there was a trend line break for GBPJPY.GBPJPY The pair also moved below the 100 and 200 monthly simple moving averages, suggesting that the British Pound were in control and may take the pair further down.Currently, the pair is trading near the 76.4% Fib retracement level of the last leg from the 116.94 low to 196.05 high, which is providing support to GBPJPY.

Japanese Retail Trade

Today in Japan, the Retail Trade, which captures the aggregate sales made through a business location (usually a store) in which the principal activity is the sale of merchandise and related services was released by the Ministry of Economy, Trade and Industry. The forecast was slated for a decrease of 1.6% in May 2016, compared with the same month a year ago.However, the result was disappointing, as there was a decrease of 1.9% in the retail trade in May 2016. If we have a look at the monthly report, then there was no change in the trade.

UK Consumer Credit and Mortgage Approvals

Today in the UK, there are a few low-risk releases lined up, including the Consumer Credit and Mortgage approvals. The Consumer Credit, which is an amount of money that individuals borrowed in the previous month will be released by the Bank of England. The forecast for the Consumer Credit is £1.400B in May 2016.Similarly, there are a few other releases, but they might not impact the British Pound at this moment, as it is currently driven by the market sentiment.
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