Forex Trading: GBPJPY Technical Analysis – January 02, 2020
The Great Britain Pound (GBP) dropped against the Japanese Yen (JPY) on Thursday, the pair’s price reflecting continuous volatility in price movement since December 13, 2019. Today the price of the pair decreased following the release of a major economic report. Speaking of the technical bias, due to the higher high movement shown during the last upside move it remains bullish.
GBP/JPY: Technical Analysis
GBPJPY is currently being offered at a price of 143.71, however, with the many levels of support that serve as a shield in order to maintain it around the current level and also provide it with the push-up power, it will probably reach its highest level of 12 December 2019. the quick support that might price get, is the Fibonacci level of 142.82 and immediately after it, there is the trend line support of around 142.49, and then at 137.29, there is the major horizontal support stands, as exhibited in the graph below.
Talking about the upside, the pair’s price might face the few resistance levels that could create barriers in its forward motion, the first trend line resistance level is at 145.12, ahead of 146.00, a psychological number, and then at the 147.90, there is the major horizontal resistance stand.
GBP Public Sector net Borrowing
Essentially, the one cause of the continuous bullish pattern is the recent figures of The Net Borrowing, which fell from £ 8.25 B to £ 4.87 B, surpassing the estimate of £ 5.6 by the economist. If net borrowing is negative, this means that UK finances are surplus, which is meant to be good for GBP.
There is a good chance for traders to invest, as GBPJPY been experiencing their bullish trend for more than two months, it wouldn’t have plummeted badly until it wouldn’t have a strong reversal.