GBP/JPY Forecast – British Pound To Regain Traction Vs Japanese Yen
- – The British Pound is following a bullish pattern and remains supported at 145.40 against the Japanese Yen.
- – There is a contracting triangle pattern forming with resistance at 146.40-50 on the hourly chart of GBP/JPY.
- – Today in Japan, the Foreign investment in Japan stocks (July 28) figure was released by Ministry of Finance.
- – The outcome was below the last reading of ¥377.0B (revised) and posted ¥292.4B.
Foreign Investment in Japan Stocks
Today in Japan, the Foreign investment in Japan stocks (July 28) figure was released by Ministry of Finance. The market was positioned for a minor rise from the last reading of ¥341.0B.
However, the actual result was neutral, as the Foreign investment in Japan stocks (July 28) came in at ¥292.4B, down from the last reading. The last reading was revised up from ¥341.0B to ¥377.0B. When we look at the foreign bond investment, there was an increase from the last revised reading of ¥946.7B to ¥1,178.6B.
Overall, the GBP/JPY pair may continue to move higher and might test the 146.20 and 146.40 levels in the near term.
GBP/JPY Technical Analysis
The British Pound remains in a nice uptrend and recently traded towards 146.50 against the Japanese Yen where it faced sellers. There was a downside correction initiated in GBP/JPY from the 146.41 high and the pair moved towards 145.50.
The pair traded below the 23.6% Fib retracement level of the last wave from the 144.46 low to 146.41 high. However, the downside move was protected by a major support area near 145.50-40. It also represents the 50% Fib retracement level of the last wave from the 144.46 low to 146.41 high.
Moreover, there is a contracting triangle pattern forming with resistance at 146.40-50 on the hourly chart of GBP/JPY. There are chances that the pair may resume the trend and could soon break the 146.00 initial resistance.
On the upside, the most important resistance is near 146.40. A successful close above 146.50 would lift the market sentiment in the near term. On the downside, the most important support and buy zone remains near 145.60-50.
