Once again, the Great Britain Pound (GBP) inched higher against the Japanese Yen (JPY) by regularly marking bullish candles for a week, today its price is more than 143.00. The graph below demonstrates the continued efforts of the GBP as it consistently attempts to gain the highest level. At the moment, the major favorable economic news is the source of this rise.
First, favorable news is yesterday’s British Retail Consortium (BRC) release Like-For-Like Retail Sales is increasing its percentage from -4.9 to 1.7 this month, calculating improvements in the actual value of participating companies ‘ retail sales with invaluable management details. Therefore, their knowledge is also more accurate and useful. A high reading is therefore seen to be good (or bullish) for GBP.
And the second is the Services Purchasing Managers Index (PMI) released by Markit Economics that captures the services sector’s business conditions. With 01 points, it is also slightly increased. Given that the services sector dominates a large part of total GDP, the PMI services are an important indicator of the overall economic situation in the United States. For the USD, an outcome above 50 signals is bullish.
With the price of 143.31, the price is fully backed up from the backing and also gets the high power support to take the price above this level as shown in the figure below.
The graph above shows the levels of resistance, above the price that could stop its forward movement, but only a few in number and that effects could be minimized with support levels.
Taking a look at GBPJPY’s recent behavior, it would be expected that the pair’s price will push forward and market back-up chances are lower, so there are opportunities for both short and medium-sized traders to make a profit.