The Great Britain Pound (GBP) rose against the Japanese Yen (JPY) on Wednesday, this led to an increase in the price of GBPJPY making the figure appear more than a total of 149.00. The price of the pair increased after a major economic news broke. The technical bias may turn bearish since the pair’s price marked a higher low in the recent upside move.

GBP/JPY Technical Analysis

Currently, the pair is being traded around 149.17, since the price is increasing it may come across a resistance around 150.21, the major horizontal resistance level is the point of reference. Another resistance level is likely to come around 153.00, the psychological number ahead of 156.60, the key horizontal support level as demonstrated in the given below chart.

Coming towards the downside, a support can be witnessed around 146.26. This is a confluence of a trend line and a horizontal support which may keep the price from passing through this level. Another support may come near 143.82, the 23.6% Fib level support and then 139.87, the major horizontal support level as demonstrated in the given above chart. The technical bias shall remain bullish unless 146.26, the confluence of a trend line and a horizontal support level remains intact.

Japanese National Consumer Price Index News

In Japan, the figure concerning national consumer price index remained at 1.3% in August, as compared to 0.9% during the month before, up beating the economist expectation which was 1.1%. The data is taken from the news released by the Statistics Bureau, Japan.

The figure is derived after the comparison is done on the retail prices of different goods and services selected from various representative shopping baskets on sampling bases. Consumer price index is considered one of the most effective ways to identify the change in purchasing patterns of consumers and their willingness to buy more or less. Inflation also affects consumer’s purchasing trends. Generally speaking a high reading in this regard is considered as a bullish trend for the Japanese Yen (JPY) whereas a low reading indicates 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.