Home Daily Analysis GBPJPY Technical Analysis: February 08, 2018

GBPJPY Technical Analysis: February 08, 2018

GBPJPY

The Great Britain Pound (GBP) rose against the Japanese Yen (JPY) on Friday, this led to an increase in the price of GBPJPY making the figure appear more than a total of 143.00. The price of the pair increased after major economic news broke. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias may remain bearish since the pair’s price marked a higher low in the recent upside move.

GBP/JPY Technical Analysis

Currently, the pair is being traded around 142.32, since the price is increasing it may come across a resistance around 145.28, an immediate 61.8% Fib level resistance is the point of reference. Another resistance level is likely to come around 147.61, the trend line resistance level ahead of 153.84, the key horizontal resistance as demonstrated in the given below chart.

GBPJPY

Coming towards the downside, a support can be witnessed around 140.01, the 38.2% Fib level which may keep the price from falling below this level. Another support may come near 136.73, the major horizontal support and then comes 131.51, the low of January 03, 2019 as demonstrated in the given above chart. The technical bias shall remain bullish unless 140.01, the major horizontal support level remains intact.

Japan’s Machinery Order News

In Japan, the figure concerning the rate of machinery orders remained at 6.8.0 percent in August, as compared to 11.0 percent during the month before, up beating the expectation of economist which was -4.0 percent. The data is sourced from news released by the Cabinet Office, Japan.

The figure represents the total number of orders placed with major manufacturers in the country. These orders are considered as a binding obligation on producers to deliver goods and services to consumers in legal terms. It is to be noted that the figure is considered the best indicator of the level of businesses confidence. Generally speaking, a higher reading in this regard is taken as a bullish trend for the Japanese Yen( JPY) whereas a lower reading suggests a bullish trend for the Japanese Yen (JPY).

Trade Idea

Considering the overall price behavior of the pair over the last couple of days, buying the GBPJPY around current levels can be a good decision in short to medium term.

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