The Improved Japan’s Merchandise Trade Balance Pushes Down The British Pound Against The Japanese Yen

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This week GBP announced the very bad status of the red labeled candle and thus pushes it down against the Japanese Yen with the price of 133.87, while two weeks ago it enjoyed the smooth progress momentum and peaked its price to 136.81 from the price of 131.06, which was one of the GBPJPY ‘s highest achievements.

Unfortunately, it updated itself this week with the fall, continuously dropping day by day and thus slowly removing the impact of increased rates.

Today it could fall due to Japan’s strengthened trade balance, which actively or passively boosted the Japanese Yen and weakened against it the other currencies, including the British Pound (GBP).

Japan depends on exports that Japan’s economy relies heavily on trade surpluses. Any variation in the figures, therefore, has an influence on the domestic economy. If a steady demand is seen in exchange for Japanese exports, that would become a good one.

The Merchandise Trade Balance Total published on June 17, 2020, by the Ministry of Finance, announced itself with ¥-833.4 B, which is relatively better than last month’s trading which was ¥-931.9 B.

GBPJPY

With full support from its degree of assistance that works at the back of the GBPJPY and tries to lift it continuously. first, there is Fibonacci level support and trendline support at 131.08, and then at 128.08, as seen in the graph bove, the main horizontal support.

Conclusion

The decision at this point becomes a bit difficult particularly for the short position holders, as the GBPJPY market is in the state of rising and falling instability.

 

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