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.
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.
