The Great Britain Pound (GBP) slips down against the Japanese Yen (JPY) on Wednesday. The decrease in the price occurs amid release of unfavorable economic news. As far as the technical bias is concerned, it might remain bullish since the price printed the higher high during the last upside move.
GBP/JPY: Technical Analysis
As of writing this piece, the GBPJPY is being asked for the price near 143.41. There may be a few resistance levels come across the way as the price moves upside. The foremost resistance level stands around 143.81, it’s a Fibonacci level which might resist the price from increasing further. Another resistance level may come near 146.00, the psychological number ahead of 147.91, the major horizontal resistance level which might force the price to stay below the said level as shown in the graph below.
Talking about the downside, the price may receive strong support near 141.22, it’s a key horizontal support level which might prevent the price from decreasing below the said level ahead of 139.15, the confluence of a trend line and horizontal support and then 137.12, the 61.8% Fib level as shown in the graph above.
Great Britain’s ILO Unemployment Rate Release
From the fundamental perspective, The unemployment rate put forward by the National Statistics shows the number of unemployed workers as a proportion of a total civilian workforce whether employed or unemployed. It’s a key indicator of the progress of the country’s economy. If an increased figure is recorded, it symbols a lack of expansion within the labor market in the U.K. Correspondingly, leading to weakening the U.K. economy. Generally speaking, a decreasing number is considered as positive (or bullish) for the GBP and vice versa.
Considering the technical bias, trading GBPJPY around current levels may be a good decision for a long term position.