The Great Britain Pound (GBP) rose against the Japanese Yen (JPY) on Thursday, this led to an increase in the price of GBPJPY making the total appear more than 145.00 The price of the pair increased after a major economic news released. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias may remain bearish because the pair’s price marked a higher low in the recent upside move.
GBP/JPY Technical Analysis
Currently, the pair is being traded around 145.03, since the price is increasing it may encounter a resistance around 146.25, the 38.2% Fib level resistance. Another resistance level may come around 147.55, the key horizontal resistance. At 149.20, the trend line resistance is likely to prevent the price of the pair from rising above this level, as demonstrated in the given below chart.
Coming towards the downside, a support can be witnessed around 142.92, a trend line support level is the point of reference. Another support may come near 142.00, the psychological number and then comes a major horizontal support around 140.65 which is likely to prevent the price from falling further as demonstrated in the given above chart. The technical bias shall remain bearish as long as 146.25, the major horizontal resistance level remains intact.
Japanese Machinery Order News
In Japan, the figure concerning the rate of machinery orders remained at 6.8.0% in August, as compared to 11.0% during the month before, up beating the expectation of economist which was -4.0%. The data is taken from a 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 as 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) and vice versa.
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.