GBP/JPY Forecast – British Pound Remains Supported Vs Japanese Yen

GBP/JPY Forecast – British Pound Remains Supported Vs Japanese Yen

  • – The British Pound formed a short-term bottom near 145.00 and recovered against the Japanese Yen.
  • – There was a break above a major bearish trend line with resistance at 146.85 on the hourly chart of GBP/JPY.
  • – Today in Japan, the Foreign exchange reserves for Feb 2018 were released by Ministry of Finance.
  • – The outcome was around the market forecast of $1,260B as the reserves in Feb 2018 were $1,261.7B.

Japan’s Foreign Exchange Reserves

Today in Japan, the Foreign exchange reserves for Feb 2018 were released by Ministry of Finance. The market was positioned for the forex reserves to be around $1,260B in Feb 218.

 

However, the actual result was around the market forecast of $1,260B as the reserves in Feb 2018 were $1,261.7B. This was a bit lower than the last reading of $1,268.5B. There was no major impact on the Yen pairs, but today’s Halifax House Price Index release in the UK may perhaps impact the GBP/JPY pair.

 

The GBP/JPY pair recovered nicely recently above the 146.20 level and it seems like the pair may continue to trade higher.

 

GBP/JPY Technical Analysis

The British Pound after a major decline found support near the 145.00 level against the Japanese Yen. The GBP/JPY pair traded as low as 144.98, started an upside move, and traded above the 145.50 resistance and the 100 hourly simple moving average.

 

GBP/JPY Technical Analysis British Pound Japanese Yen

 

The upside move was positive as the pair was able to settle above the 146.00 handle. There was also a break above a major bearish trend line with resistance at 146.85 on the hourly chart of GBP/JPY. The pair traded as high as 148.03 before starting a correction.

 

The pair corrected lower and it recently tested the 50% Fib retracement level of the last wave from the 144.98 low to 148.03 high. At the moment, it seems like the 146.50 level is acting as a decent support along with the 100 hourly simple moving average.

 

As long as the pair is above the 146.50-40 levels, it remains supported for more gains. On the upside, an initial resistance is around the 147.40 level, followed by the 148.00 handle.


Also published on Medium.

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