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 149.00. 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 lower low in the recent downside move.

GBP/JPY Technical Analysis

Currently, the pair is being traded around 148.43, since the price is decreasing it may come across a support around 147.39, the major horizontal support level is the point of reference. Another support level is likely to come around 145.95, the confluence of a trendline support and a major horizontal support level ahead of 144.78, the key horizontal support level as demonstrated in the given below chart.

Coming towards the upside, a resistance can be witnessed around 150.21. This is a 61.8% Fib level resistance which may keep the price from passing through this level. Another resistance may come near 153.00, the psychological number and then 156.60, the major horizontal resistance level as demonstrated in the given above chart. The technical bias shall remain bullish unless 147.23, the trendline support level is broken.

Japan’s Total 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) and vice versa.

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.