The Great Britain Pound (GBP) slid down against the Japanese Yen (JPY) on Friday, decreasing the price of GBPJPY to less than 143.00 following some major economic releases. The technical bias may remain bearish since the pair’s price marked a lower low in the recent downside move.
GBP/JPY Technical Analysis
Currently, the pair is being traded around 142.62, a support can be witnessed around 141.17, an immediate trendline support ahead of another support 138.00, the psychological number and then comes 135.56, the key horizontal level as demonstrated in the given below chart.
On the upside, the price may come across a resistance around 146.08, the immediate horizontal resistance. Another resistance level may come around 148.530, the confluence of a trend line and horizontal resistance level ahead of 151.59, the 23.6% Fib level resistance as demonstrated in the given above chart. The technical bias shall remain bearish unless 146.08, the major horizontal resistance level remains intact.
US ISMI Prices Paid News
In the US, the figure concerning the price index of ISMI remained 72.1 in August, as compared to 73.2 during the month before, up beating the economist expectation which was 70.2. The data is copied from the news released by the US Institute for Supply Management.
It shows the prevailing condition of the manufacturing market of the country. The figure is derived after taking into account various elements of the market such as new orders placed, the estimated rate of production for the future, employment rate, available inventories, and deliveries made so far.
The ISM figure is considered as a sensitive indicator of the US economy. It is also taken as an indicator of the sentiment of business concerning the inflation that may occur in a due course of time. Generally speaking, a high reading in this regard is taken as a bullish trend for the US Dollar (USD) whereas a low reading suggests a bearish market 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.