The Great Britain Pound (GBP) fell against the Japanese Yen (JPY) on Monday, this led to a decrease in the price of GBPJPY making the figure appear less than a total of 147.00. The price of the pair decreased after a major economic news broke. The technical bias may turn 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 146.66, since the price is decreasing it may come across a support around 146.14, the 61.8% Fib level support is the point of reference. Another support level is likely to come around 144.93, the key horizontal support level ahead of 143.70, the key horizontal support level as demonstrated in the given below chart.
Coming towards the upside, a resistance can be witnessed around 148.56. This is a 38..2% Fib level resistance which may keep the price from passing through this level. Another resistance may come near 149.56, the confluence of two trend lines and then 151.63, the major horizontal resistance level as demonstrated in the given above chart. The technical bias shall remain bullish unless 146.05, the key horizontal support level remains intact.
Japan’s Net Household Spending News
In Japan, the stats concerning the total household spending remained 2.8% in August, as compared to 0.1% during the month before, up beating the economist expectation which was -0.1%. The data is copied from the news broke by the Ministry of International Affairs and Communication, Japan.
The figure represents consumers’ confidence and willingness to spend. This figure is also considered as an indicator to show a growth or declination in the country’s economy. Generally speaking a high reading in this regard is taken as a bullish trend for the Japanese Yen (JPY) whereas a low reading implies a bearish trend for the US Dollar (USD).
Trade Idea
Considering the overall price behavior of the pair over the last couple of days, selling the GBPJPY around current levels can be a good decision in short to medium term.