Forex Trading: GBPJPY Technical Analysis – October 24, 2019
The Great Britain Pound (GBP) rose against the Japanese Yen (JPY) on Thursday, raising the price of GBPJPY to over 140.00 after several major economic releases. The technical bias can remain bullish as the pair’s price marked a lower high peak in the recent downside move.
GBP/JPY Technical Analysis
Currently, the pair is being traded around 140.36. Immediate trendline resistance can be found nearly 143.07, ahead of 143.42, the 61.8% Fib level resistance, and then comes 153.84, a significant horizontal resistance as shown in the chart.
On the downside, key horizontal support can be seen about 137.97, ahead of 136.69, the trendline support and then 135.75, the 38.2% Fib level that prevents the price from dropping lower, as shown in the graph above. The technical bias will remain bullish as long as 143.07 remains the key level of horizontal support.
JPY Leading Economic Index
On 24 October, the Cabinet Office announced that JPY’s leading economic index dropped to 91.9, lower than last month’s 93.7, but higher than economist’s expectations, i.e. 91.7.
The Cabinet Office’s Leading Economic Index is an economic indicator composed of 12 indices, including account inventory levels, equipment orders, stock prices, and other leading economic indicators. This indicates the Japanese economy’s success in the short and mid-term. In general, a reading above is considered positive (or bullish) for the JPY and vice-versa.
Given the overall market action of the pair over the past few days, buying GBPJPY around current levels can be a good decision in the short to medium term. Since trading requires a number of other elements to remain secure, such as the choice of brokers, trading platform, leverage rates, negative balance protection, etc, therefore, exploring comparative websites may help you achieve your desired results.