Forex Trading: GBPJPY Technical Analysis – January 07, 2020
With the constant price fluctuations from more than a week, the Great Britain Pound (GBP) has fallen on Tuesday against the Japanese Yen (JPY), with the price decrease of 1.3200. The main economic news has become the cause of the decline. Nonetheless, the technical bias is bullish, as it printed a higher high wave on the graph below in the last upside move.
GBP/JPY: Technical Analysis
As the writing of this piece, the price of GBPJPY is being traded at 1.3147, at different interval below this price, the support levels have been observed, the first support level is right after the pair’s price of around 1.3149, the Fibonacci level, afterward the trendline support of 1.2754, and immediate after it comes to the major horizontal support of 1.2735. All these support levels act as a barrier to keep it around the current level and also provide it with the lift-up power so that it is likely to reach its highest level of December 12, 2019.
Talking about the levels of resistance, the price might face its immediate resistance at the 1.3190, the trendline resistance, ahead of the psychological number of 1.3200, then the key horizontal resistance that is much far from the pair’s price as demonstrated in the graph above is at 1.3511.
GBP Markit Construction
Fundamentally, the decline in the construction of Markit became the effect of below the GBP against the JPY. Market Construction dropped by about 11 points this month compared to the previous month, while economists expected it would rise by 05 points.
The PMI Construction published by the Purchasing & Supply and Markit Economics Chartered Institute demonstrates market conditions in the construction sector in the UK. It should be remembered that the construction sector does not influence GDP as much as the manufacturing sector does, either positively or negatively, resulting in prices over 50 signals appreciating (or being bullish for) GBP.
Looking at support levels for GBPJPY, it would be expected that the pair’s price will push forward and there are fewer chances of market back-up, so opportunities are available for short and medium-sized traders to make a profit.