Forex Trading: GBPJPY Technical Analysis – January 31, 2020
It’s the trading week’s second day, that it finally takes the move following the last week’s continuous decrease. It labeled itself today with a price that exceeded 143.00. This is the good start of the journey again, pushing the smooth ride once more. And it is also believed that it has many levels of support that soon lift its price and, with little effort, it once again reaches the highest position. Therefore, the technical bias remains bullish, due to the lower high move shown on the last downside movement in the graph.
GBP/JPY: Technical Analysis
At now, the GBPJPY demanded at the 142.77, with the levels of the resistance, on the upper side, that might hit the price as it moves toward the forward direction. At first, the price has a trendline resistance at 143.88, afterward, there is another trendline resistance at 144.89, and it has the major horizontal resistance at 147.83, which is much far away from the price.
Thankfully, the support levels are at the back of the price that soon raises the price, quite after the price, there is the trendline support at 141.91, instantly after it, there is the confluence of the trendline and the 38.2 percent Fib level at 139.77, and then it is also the support of the key horizontal at 137.27.
Manufacturing Purchasing Managers (PMI)
This month the Index of Manufacturing Purchasing Managers (PMI) rose from 47.5 to 49.8 (the last month figure). In the manufacturing sector, it captures business conditions. Given that the manufacturing sector dominates a large portion of total GDP, the manufacturing PMI is an important indicator of business conditions and the overall economic condition in the UK.
As of this stage, it could be sensible to invest the money in GBPJPY, as there are support levels at the back of the price that provide it, the strength to rise above and get back to the peak.