The GBP/JPY increased significantly today and resumed the yesterday’s bullish candle. The rate has rebounded after a significant drop. Price maintains a bullish perspective after the retest of a dynamic support. We’ll see what will happen because the Nikkei stock index could drop deeper, so a further drop will force the Yen to climb much higher versus all its rivals and not only against the Pound.

The Cable has increased significantly also versus the greenback today, on the other hand, the Yen has also lost ground versus the USD and versus the Euro.

The United Kingdom data have come in mixed today, the Gfk Consumer Confidence increased a little from -113 to -9 points, has come in better versus the -13 estimate, while the BRC Shop Price Index dropped by 0.5% after the 0.6% in the former reading period.

The Yen decreased even if the Japanese Industrial Production increased by 2.7% in December, beating the 1.5% estimate and the 0.5% growth in the former reading period, the Housing Starts dropped by       -2.1%, even if the if the economists have expected to see a 1.1% growth, the Consumer Confidence has remained steady at 44.7 points, even if the traders have expected to see an increase to 44.9 points.

The rate has increased after the failure to close near the first warning line (WL1) of the ascending pitchfork. It is expected to climb towards the 150% Fibonacci line (ascending dotted line) of the ascending pitchfork.

We have an important upside target at the second warning line (wl2) of the descending pitchfork as well, it will reach this line if will stay above the mentioned support line. A selling opportunity will appear only if the rate will make a valid breakdown below the WL1, this scenario will take shape only if the Nikkei stock index will plunge aggressively in the upcoming period.