The GBP/JPY has increased today, but now is losing altitude as the Cable looks a little exhausted on the short term. Price maintains a bullish perspective on the short to the medium term despite a minor drop, is somehow expected to drop in the upcoming days as the Yen could dominate the currency market if the Nikkei stock index will fail to stay higher.
The pair has increased today as the JP225 index has resumed the short rebound and has touched new highs, is trading much above the 19700 broken static resistance, a further increase will send the Yen much lower versus its rivals on the short term, but I’m afraid that the Nikkei’s bounce back is only temporary.
The Cable has dropped from the European trading session as the United Kingdom data have come in mixed, the Second Estimate GDP rose by 0.2% in Q1, less versus the 0.3% estimate, while the Prelim Business Investment surged by 0.6%, much more versus the 0.3% forecast. Moreover the BBA Mortgage Approvals dropped from 40.9K to 40.8K in April, matching expectations, while the Index of Services increased only by 0.2%, less versus the 0.3% estimate and versus the 0.4% growth in the previous reading period.
Price has changed little today and maybe is better to stay away from this pair in the upcoming days because we don’t have any trading opportunity right now. Could move sideways on the short term before will make a significant move.
Has lost altitude in the last hours and could drop even lower if the Nikkei will slip lower, technically, could be attracted by the lower median line (LML) of the ascending pitchfork after the failure to reach and retest the median line (ML). Price has failed also the reach and retest the 148.44 static resistance, now looks a little exhausted because has failed to reach the 50% Fibonacci line (ascending dotted line), could come down again to retest the 143.24 static support. Price maintains a bullish perspective as long as is trading within the ascending pitchfork’s body, we’ll see a larger upside movement only if the rate will take out the 148.44 resistance.