Forex Trading: GBPJPY Technical Analysis – December 23, 2019
The Great Britain Pound (GBP) inched higher against the Japanese Yen (JPY) on Monday, increasing the price of the GBPJPY to more than 142.32. The price increases amid the release of favorable economic news. The last week didn’t work out for the Great Britain Pound (GBP) as it kept on decreasing for three days continuously, however before the end of the trading week, it marked a bullish candle. Talking about the technical bias, it might remain bullish because the price printed a higher high in the recent upside move.
GBP/JPY: Technical Analysis
As of writing this piece, the GBPJPY is being exchanged for the price near 142.32. The price may observe a few resistance levels while moving upside. The 23.6% Fib level resistance just stands ready to push the price back towards downside near 142.89, ahead of 145.00, the psychological number and then the high of December 13, 2019, may restrict the price around 147.95, preventing it from increasing above the said level as shown in the graph below.
Coming towards the downside, there may be multiple support levels seen on the graph with the first one being the key horizontal support level which may come across the price around 139.76, helping the price to sustain around the current levels. Another support level may support the price near 134.70, the Fibonacci level and the comes 127.24, the trend line support as shown in the graph above.
UK’s Manufacturing and Industrial Sector Economic Release
From a fundamental standpoint, GBP receives favorable news from the Manufacturing and Industrial such as the rate for both of them increases from a negative figure to a positive production rate. As a matter of fact both the manufacturing and industrial sector are considered important as a transitory proportion of the power of UK manufacturing activity involving an enormous amount of absolute GDP. Generally speaking, It is perceived that strong GBP outcomes are bullish.
Trading GBPJPY around current levels for a long term position might be a good idea.