Forex Trading: GBPJPY Technical Analysis – January 23, 2020
The Great Britain Pound (GBP) depreciated itself against the Japanese Yen (JPY) at the price below the 144.00, but on the opposite side, there is also the positive image of the GBPJPY, that it is taking the step towards the forward movement after the massive fall of 13 December 2019. Today’s fall is attributed to the JPY’s unfavorable main economic news. Nonetheless, the technical bias remains bullish, due to the lower high move shown in the last downside movement.
GBP/JPY: Technical Analysis
At times, the GBPJPY is being quoted itself at 143.86. with the numbers of the support levels, it has been assumed that the price has the tendency to move forward and hence it will soon get back its lost height. The price is first assisted by the 143.54, the 23.6% Fib level support, ahead of the 140.28, the trendline support level and then at 137.61, the price has the major horizontal support level, as exhibited in the graph below.
Fortunately, although the price has the levels of resistance, very few in numbers, that has pointed the mind to the fact that the price keeps its growth and gets its desired point. At 61.8% Fib level, the price may meet its first resistance of 144.06, ahead of 146.00, a psychological number, and then at 146.08, there is the major horizontal resistance stands.
JPY Industrial Production
Yesterday’s Industrial Production news released by the Ministry of Economy, Trade, and Industry became the trigger of GBPJPY depreciation, as it closed its figure with 8.2 percent negative figure, the already low figure fell further, thus allowing CAD’s oppressiveness to grow higher. This industrial production tests Japanese factories and mines ‘ outputs.
Changes in industrial production are widely followed in the manufacturing sector as an effective strength measure. A high reading is perceived as bullish for the JPY, while a low reading is perceived as bearish.
A glance at the pair’s price movement over the last few days, it may be a great way to make the money flow around current levels for both short- and long-term positions, as the stock will continue on its bullish trend for a while.