GBP/JPY Forecast – British Pound To Decline Below 148.50 Vs Japanese Yen?

GBP/JPY Forecast – British Pound To Decline Below 148.50 Vs Japanese Yen?

  • – The British Pound is under a lot of pressure and it recently declined below 149.00 against the Japanese Yen.
  • – There are two bearish trend lines forming with resistances at 149.30 and 149.80 on the hourly chart of GBP/JPY.
  • – Today in Japan, the Gross Domestic Product for Q4 2017 (Prelim) was released by the Cabinet Office.
  • – The outcome was below the forecast of 0.2% as there was a rise in the GDP by 0.1% in Q4 2017.

Japan’s Gross Domestic Product

Today in Japan, the Gross Domestic Product for Q4 2017 (Prelim) was released by the Cabinet Office. The market was positioned for a rise of 0.2% in the GDP in Q4 2017 compared with the previous quarter.

 

However, the actual result was below the forecast of 0.2% as there was a rise in the GDP by 0.1% in Q4 2017. This was well below the last reading of 0.6%. In terms of the yearly change, the preliminary reading suggests a rise of 0.5% in the GDP, less than the forecast of 0.9%.

 

The GBP/JPY pair is currently declining, but there could be a minor upside correction towards the 149.30 and 149.80 resistance levels.

 

GBP/JPY Technical Analysis

The British Pound started a fresh downside move from well above the 154.00 level against the Japanese Yen. The GBP/JPY pair declined, broke the 152.00 and 150.00 support levels, and settled below the 100 hourly simple moving average.

 

GBP/JPY Technical Analysis British Pound Japanese Yen

 

The fell below the 149.00 support as well and traded as low as 148.70 recently. It seems like the pair could decline further towards the 1.236 Fib extension of the last wave from the 148.91 low to 150.82 high at 148.46. On the upside, there are two bearish trend lines forming with resistances at 149.30 and 149.80 on the hourly chart.

 

If the pair corrects higher from the current levels, the 149.30 and 149.80 resistance levels are likely to act as a strong barrier.

 

Overall, the pair decline below 148.50 and if sellers remains in control, it could even test the 1.618 Fib extension of the last wave from the 148.91 low to 150.82 high at 147.73.


Also published on Medium.

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