The GBP/JPY increased a little in the last days and resumed the upside movement, but remains to see if we’ll have a larger rebound or this will be a temporary one. The Yen decreased a little as the Nikkei stock index has failed to resume the bearish momentum. The JP225 increased in the yesterday’s trading session and forced the Yen to depreciate versus all its rivals.

Price has made two false breakdowns and now it seems motivated to reach new highs. It will be very important to see what will really happen on the Nikkei stock index because another drop will help the Yen to take the lead again and to dominate the currency market.

The currency pair was into a corrective phase, but a larger drop was invalidated for now.  The Pound has received support from the Average Earnings Index, which surged by 2.8% in January, beating the 2.6% estimate and the 2.7% growth in the former reading period, while the Unemployment Rate decreased unexpectedly to 4.3%, from 4.4% in the former reading period. The Claimant Count Change was reported at 9.2K, higher compared to the -3.1K estimate, while the Public Sector Net Borrowing was reported at -0.3%,  higher versus the -0.4% estimate.

The rate increases after the retest of the second warning line (wl2) of the red ascending pitchfork and now it could climb towards the 152.83 static resistance. You can see that the rate has made three false breakouts below the mentioned downside obstacle.

Resistance can be found at the second warning line (wl2) of the descending pitchfork and at the first warning line (wl1) of the former ascending pitchfork, this scenario will happen only if the Nikkei stock index will jump higher and will take out the near term resistance levels. A JP225’s further drop will force the Yen to take the full control again.