GBP/JPY Analysis – Pound To Yen May Continue To Struggle
- – The British Pound declined recently towards 140.00 against the Japanese yen.
- – The GBP/JPY pair after finding support started a recovery, but faced sellers near 141.20.
- – In the UK, the Industrial Production released by the National Statistics posted a rise of 2% in Nov 2016, more than the forecast of 0.6%.
UK Industrial and Manufacturing Production
In the UK today, the Industrial and Manufacturing Production figures were released by the National Statistics. The market was aligned for an increase of 0.6% in the Industrial Production in Nov 2016, compared with the same month a year ago.
However, the result was better than the forecast, as there was a rise of 2% in the UK Industrial Production. Similarly, the UK Manufacturing Production posted a rise of 1.2% in Nov 2016, compared with the same month a year ago, better than the forecast of 0.4%. The report mentioned that the “increase in production was due to an increase in mining and quarrying output following the end of a maintenance period in the oil and gas industry and an increase in manufacturing”.
Overall, the result was positive, but seems like the GBP buyers are not impressed, and as a result, the GBP/JPY pair may continue to decline back towards 140.00.
GBP/JPY Technical Analysis
The British Pound was under a lot of bearish pressure against the Japanese yen recently, as it fell close to the 140.00 handle. The GBP/JPY pair somehow managed to find support near the stated level, and started correcting higher.
The pair moved higher, and broke the 141.00 resistance area. However, it failed to break the 23.6% Fib retracement level of the last decline from the 144.04 high to 140.17 low. There was no H4 close above the stated fib level.
It looks like the pair is struggling during the current recovery wave and may decline back towards 140.00. Even if it manages to move further higher, there are a couple of bearish trend lines on the 4-hours chart, waiting to act as a resistance near 142.00. Overall, the trend is bearish in GBP/JPY, and any major rallies may be seen as selling opportunities.
