- – The British Pound made a nice upside move recently and is currently trading above 154.00 against the Japanese Yen.
- – There is a crucial ascending channel forming with support at 154.10 on the hourly chart of GBP/JPY.
- – Today in Japan, the Nikkei Manufacturing PMI for Jan 2017, preliminary reading was released.
- – The outcome was above the forecast of 54.3 as there was a rise from 54.0 to 54.4.
Japan’s Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI for Jan 2017, preliminary reading was released. The market was positioned for a small rise in the index from the last reading of 54.0 to 54.3
However, the actual result was above the forecast of 54.3 as there was a rise from 54.0 to 54.4, which means there was a decent expansion activity in Jan 2017. Commenting on the PMI report, an Economist at IHS Markit, Joe Hayes, stated:
January flash PMI data for the Japanese manufacturing economy signalled further positivity. The sector as observed accelerated rates of improvement in each of the past three months.
The GBP/JPY pair remains in an uptrend above the 154.00 support and it seems like the pair could accelerate above 154.50-80 in the near term.
GBP/JPY Technical Analysis
The British Pound started a major uptrend from the 152.20 swing low against the Japanese Yen. The GBP/JPY pair traded higher and broke many important resistances like 153.00 and 154.00 to close above the 100 hourly simple moving average.
The pair traded as high as 155.39 before starting a downside correction. It moved down and traded towards the 154.00 support. It seems like there is a crucial ascending channel forming with support at 154.10 on the hourly chart.
The pair bounced once and traded above the 50% Fib retracement level of the last drop from the 155.39 high to 153.71 low. The upside move was protected by the 154.75 resistance. At the moment, the pair is holding the 134.00 support is currently trading above the 100 hourly SMA.
As long as the pair is above the 154.00 level, it is likely to move higher. On the upside, a break above the 154.75-80 resistance is needed for buyers to gain traction.
Also published on Medium.Tags: British Pound, GBP/JPY, GBP/JPY Technical Analysis, US Dollar