Forex Trading: GBPJPY Technical Analysis – Febuary 05, 2020
It’s quite nice to say that its the second day that Great Britain Pound (GBP) marked itself bullish on the graph against the Japanese Yen (JPY), it placed its position on the graph at more than 143.00 today. This is because of the good news from the UK. Therefore, the technical bias might remain bullish, due to the higher high movement on the graph in the last upside move.
GBP/JPY: Technical Analysis
At this moment, GBPJPY offered at the price of 143.14, Just above the price, the trendline of 143.23 is passing, which might push back the price to the backward direction, ahead of this trendline, there is the Fibonacci level at 143.80, and then at 144.74, the price might experience the trendline.
But this is very good for the price that it is facilitated by the number of support levels, first, there’s the confluence of the trendline and the level of Fibonacci at 141.30, then at 139.89, there is another trendline support and then at 139.15, there is the key horizontal support.
UK Index of Manufacturing Purchasing Managers (PMI)
Yesterday’s Index of Manufacturing Purchasing Managers (PMI) lied at the’ 50 although it was significantly better than the last index of 49.8. As for GBP, the over 50 result is bullish, while the under 50 results is known as bearish. Since the manufacturing sector represents a large part of the total GDP, Manufacturing PMI is an important indicator of the business conditions and the overall situation of the economy.
In the meantime, for over two weeks, the GBPJPY has been at just about the same level, with this recent movement only the short-term traders can render profit. While the long-term traders may wait for a little until the price of the pair has not taken a big step forward.