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Market Analysis

Home » Technical Analysis » Daily » GBPJPY – British Pound Bullish Vs Yen?

GBPJPY – British Pound Bullish Vs Yen?

Posted by FXTimes in Daily - May 11th, 2016 2:10 pm GMT

GBPJPY Pound yen

Key Points

  • British Pound traded as high as 158.00 vs the Japanese Yen before it found resistance.
  • The GBPJPY pair moved down, and found support near a bullish trend line on the hourly chart.
  • UK Manufacturing Production released by the National Statistics posted a rise of 0.1% in March 2016, which was less than the forecast of 0.3%.
  • UK Industrial Production also posted a lower than expected increase of 0.3% in March 2016.

Technical Analysis

The British Pound after solid gains vs the Japanese Yen started to find offers near 158.00, and moved down. However, there was a bullish trend line on the hourly chart of GBPJPY, which prevented the downside move and acted as a support area.

GBPJPY

The pair bounced once from the support trend line, but the upside was limited around the 50 hourly simple moving average.

So, there is a chance of another dip towards the support trend line where the bulls may appear again.

UK Manufacturing and Industrial Production

Earlier today, the UK Manufacturing Production, which measures the manufacturing output was released by the National Statistics. The market was expecting a rise of 0.3% in March 2016, compared with the previous month. However, the outcome was lower, as the increase was 0.1%.

Moreover, the UK Industrial Production also posted a lower than expected increase of 0.3% in March 2016. In terms of the yearly change, the UK Industrial Production was better, as there was a decline of 0.2%, whereas the forecast was a decline of 0.2%.

Overall, the British Pound struggled to gain traction, and moved down. However, the support trend line on the hourly chart holds the key for a recovery.

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