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GBPJPY – Is This A Real Break For British Pound Bulls?

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Aayush Jindal

GBPJPY – Is This A Real Break For British Pound Bulls?

Key Highlights

  • British Pound after weakening for a brief period vs the Japanese yen found support near 153.50-60.
  • There was a bearish trend line formed on the 4-hours chart of the GBPJPY pair, which was breached recently by the British Pound bulls.
  • In the UK today, the trade balance report will be released by the National Statistics, which is forecasted to post a better than last time figure.
  • In China today, the Consumer Price Index released by the National Bureau of Statistics of China posted a decline of 0.2% in April 2016.

GBPJPY Technical Analysis

The British Pound started a recovery this week against the Japanese Yen, and traded above the 155.00 resistance area. There was also a bearish trend line formed on the 4-hours chart of the GBPJPY pair, which was cleared during the upside move.GBPJPYHowever, the pair may be heading towards a monster resistance area on the upside, which is a confluence area of the 100 and 200 hourly simple moving average.On the downside, the 156.00 area might now act as a support if the pair moves lower.

UK Trade Balance

Today in the UK, the trade balance, which is a balance between exports and imports of goods will be released by the National Statistics. The market is expecting improved numbers in March 2016, compared with the last month.The UK Goods Trade Balance is forecasted to post a trade deficit of £-11.200B in March 2016, less than the last deficit of £-11.964B. Any better figure may help the British Pound to gain bids in the short term.

Chinese CPI

Earlier during the Asian session, there was a major release in China. The Chinese Consumer Price Index, which is a measure of retail price variations within a representative basket of goods and services was released by the National Bureau of Statistics of China. The forecast was slated for a decline of 0.2% in the CPI in April 2016.The result was in line with the forecast, as there was a decline of 0.2% in the Chinese CPI. In terms of the yearly change, there was a rise of 2.3% in the CPI in April 2016, which was lower compared with the forecast of 2.4%.Overall, the market remained on the edge, and this is the reason why there are chances of more gains in GBPJPY in the near term.
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