GBP/JPY Forecast – British Pound Holding Uptrend Support Vs Japanese Yen

GBP/JPY Forecast – British Pound Holding Uptrend Support Vs Japanese Yen

  • – The British Pound surged higher recently and moved above 151.00 against the Japanese Yen.
  • – There is a short-term bullish trend line forming with support at 151.20 on the hourly chart of GBP/JPY.
  • – Today in Japan, the Consumer Confidence for Oct 2017 was released by the Cabinet Office.
  • – The outcome was above the forecast of 44.0 as there was a rise from 43.9 to 44.5.

Japan’s Consumer Confidence

Today in Japan, the Consumer Confidence for Oct 2017 was released by the Cabinet Office. The market was positioned for a minor rise in the index from the last reading of 43.9 to 44.0.

 

However, the actual result was above the forecast of 44.0 as there was a rise from 43.9 to 44.5. Looking at the overall livelihood index, there was a rise from 42.5 to 43.0, and the income growth index was up from 41.8 to 42.5. The report added that:

 

This survey was conducted on October 15th, 2017. It covered 8,400 households (Households of two or more persons are 5,712, One-person households are 2,688). The response rate was 69.7% (Households of two or more persons: 74.7%, One-person households: 59.3%).

 

Overall, the GBP/JPY pair is likely to move higher as long as there is no break below the 151.00 support.

 

GBP/JPY Technical Analysis

The British Pound started a nice upside move from the 149.00-149.20 support area against the Japanese Yen. The GBP/JPY pair surged higher and broke a few key resistance levels such as 150.00, 150.40 and 151.00 and settled above the 100 hourly simple moving average.

 

GBP/JPY Technical Analysis British Pound Japanese Yen

 

The pair traded as high as 151.94 from where a minor correction was initiated. It declined below the 23.6% Fib retracement level of the last wave from the 149.19 low to 151.94 high. However, the pair is currently holding a short-term bullish trend line with support at 151.20 on the hourly chart.

 

The trend line support is important at 151.20. As long as the pair is above 151.20 and 151.00, it would resume its uptrend. A break of the 151.00 support would ignite a downside wave towards the 50% Fib retracement level of the last wave from the 149.19 low to 151.94 high near 150.55.

 

On the upside, the 151.50 level is an initial resistance. Above 151.50, the pair might retest 151.90.

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