GBPJPY – British Pound Turned Bullish Vs Japanese Yen
Aayush Jindal
Key Highlights
The British Pound gained bids during the past few days, and moved above 141.00 against the Japanese Yen.
There was a crucial bearish trend line with resistance at 138.60 on the daily chart of GBPJPY, which was broken recently.
Today in Japan, the Foreign bond investment (April 21, 2017) released by Ministry of Finance posted ¥-1,283.8B, compared with the last ¥-796.2B.
The Japanese Foreign investment in Japan stocks (April 21, 2017) posted ¥258.4B, compared with the last ¥315.2B.
GBPJPY Technical Analysis
The British Pound was in a long-term downtrend against the Japanese until it found support at 135.60. Later, the GBPJPY pair gained bids, and moved above the 141.00 resistance.During the upside move, the pair broke a crucial bearish trend line with resistance at 138.60 on the daily chart. It also moved above the 100-day simple moving average at 141.17.These are positive signs, as the pair now above the 38.2% Fib retracement level of the last decline from the 148.43 high to 135.62 low.There are high chances of it moving further higher towards the 61.8% Fib retracement level of the last decline from the 148.43 high to 135.62 low at 145.40 in the medium term.
Japanese Securities Investment
Earlier during the Asian session, the Japanese Foreign bond investment figure (April 21, 2017) was released by Ministry of Finance. The market was not expecting any major decline, compared with the last ¥-796.2B.The result was mixed, as it came in at ¥-1,283.8B. Moreover, the Japanese Foreign investment in Japan stocks (April 21, 2017) came in at ¥258.4B, compared with the last ¥315.2B.
Economic Releases to Watch Today
Euro Zone Consumer Confidence April 2017 – Forecast -3.6, versus -3.6 previous.
Euro Zone Services Sentiment April 2017 – Forecast 12.9, versus 12.7 previous.
Euro Zone Industrial Confidence April 2017 – Forecast 1.3, versus 1.2 previous
Euro Zone Economic Sentiment Indicator April 2017 – Forecast 108.1, versus 107.9 previous.
Italian Consumer Confidence for April 2017 - Forecast 107.2, versus 107.6 previous.
German Consumer Price Index for April 2017 (YoY) (Preliminary) – Forecast +1.9%, versus +1.6% previous.
German Consumer Price Index for April 2017 (MoM) (Preliminary) – Forecast -0.1%, versus +0.1% previous.
US Initial Jobless Claims - Forecast 241K, versus 244K previous.
During the upside move, the pair broke a crucial bearish trend line with resistance at 138.60 on the daily chart. It also moved above the 100-day simple moving average at 141.17.These are positive signs, as the pair now above the 38.2% Fib retracement level of the last decline from the 148.43 high to 135.62 low.There are high chances of it moving further higher towards the 61.8% Fib retracement level of the last decline from the 148.43 high to 135.62 low at 145.40 in the medium term.