The Great Britain Pound (GBP) fell against the Japanese Yen (JPY) on Thursday, this led to a decrease in the price of GBPJPY making the figure appear less than a total of 146.00. 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 higher low in the recent upside move.

GBP/JPY Technical Analysis

Currently, the pair is being traded around 145.49, since the price is decreasing it may come across a support around 144.78, the key horizontal support level is the point of reference. Another support level is likely to come around 143.63, the 38.2% Fib level support ahead of 139.87, another major horizontal support as demonstrated in the given below chart.

Coming towards the upside, a resistance can be witnessed around 147.39. This is an immediate horizontal resistance level which may keep the price from passing through this level. Another resistance may come near 149.27, the trend line resistance and then 149.71, the confluence of a trend line and a major horizontal resistance level as demonstrated in the given above chart. The technical bias shall remain bearish unless 147.39, the key horizontal resistance level remains intact.

Japan’s Net 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) whereas a low reading implies a bearish trend for the US Dollar (USD).

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.