The Great Britain Pound (GBP) fell against the Japanese Yen (JPY) on Wednesday, decreasing the price of GBPJPY less than 148.00. The price of the pair decreased after a major economic news broke. The technical bias may remain bullish since the pair’s price marked a lower high in the recent downside move.
GBP/JPY Technical Analysis
Currently, the pair is being traded around 147.11, since the price is decreasing a support can be seen around 146.15, the major horizontal support level ahead of 145.30, the 61.8% Fib level support and then 142.80, the trendline support level as demonstrated in the given below chart.
On the upside, a resistance can be witnessed around 149.34, an immediate horizontal resistance level which may keep the price from increasing above this level. Another resistance may come near 150.18, the 61.8% Fib level resistance and then comes 156.56, the major horizontal resistance level as demonstrated in the given above chart. The technical bias shall remain bullish unless 143.81, the major horizontal support level remains intact.
JPY 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) whereas a lower reading implies a bearish market 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.