GBPJPY – British Pound Trend Overwhelmingly Negative Vs Yen
Aayush Jindal
Key Highlights
The British Pound declined heavily from the 140.10 high against the Japanese Yen.
There are two bearish trend lines with resistance 140 formed on the 4-hours chart of GBPJPY.
Today, the UK British Retail Consortium (BRC) Shop Price Index released for March 2017 posted a decline of 0.8%.
Today, the Japanese Services Purchasing Managers Index (PMI) for March 2017 released by Markit Economics posted a rise from 51.3 to 52.9.
GBPJPY Technical Analysis
The British Pound struggled a lot during the past few days near 140 against the Japanese yen. As a result, the GBPJPY pair traded lower and remains poised for a decline towards 136.The pair faced continuous offers near 140, as there are two bearish trend lines on the 4-hours chart. Moreover, the pair also struggled near 100 and 200 simple moving average (H4) at 140.10 and 139.90. The pair fell sharply and declined below 139 and 138, and even below the last low of 137.51.So, there are chances of a decline towards the 1.236 extension of the last leg from the 137.51 low to 140.08 high at 136.91.
UK BRC Shop Price Index
Today in the UK, the UK British Retail Consortium (BRC) Shop Price Index for March 2017 was released. The market was expecting a decline of 1% in March 2017, compared with the same month a year ago.However, the result was a bit better, as there was a decline of 0.8%. The report added that “Food inflation accelerated to 1.0% in March, up from the 0.8% fall in January. This is the sharpest inflationary rise since February 2014”.
Japanese Services PMI
Today in Japan, the Services Purchasing Managers Index (PMI) for March 2017 was released by Markit Economics. The market was aligned for a decline from the last reading of 51.3 to 51.2 in March 2017.However, the result was well above the forecast, as the Japanese Services PMI posted an increase from 51.3 to 52.9. The report added that “Hopes for continued growth in new business helped to underpin positive forecasts for activity over the coming 12 months. Latest data showed that service sector expectations were at their strongest since April 2016“.Overall, the GBPJPY pair might correct a few pips, but remains well below many crucial resistance levels like 139 and 140.
The pair faced continuous offers near 140, as there are two bearish trend lines on the 4-hours chart. Moreover, the pair also struggled near 100 and 200 simple moving average (H4) at 140.10 and 139.90. The pair fell sharply and declined below 139 and 138, and even below the last low of 137.51.So, there are chances of a decline towards the 1.236 extension of the last leg from the 137.51 low to 140.08 high at 136.91.
However, the result was well above the forecast, as the Japanese Services PMI posted an increase from 51.3 to 52.9. The report added that “Hopes for continued growth in new business helped to underpin positive forecasts for activity over the coming 12 months. Latest data showed that service sector expectations were at their strongest since April 2016“.Overall, the GBPJPY pair might correct a few pips, but remains well below many crucial resistance levels like 139 and 140.