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Market Analysis

Home » Technical Analysis » Daily » GBPJPY – British Pound Suffering Continues Vs Japanese Yen

GBPJPY – British Pound Suffering Continues Vs Japanese Yen

Posted by FXTimes in Daily - October 7th, 2016 8:23 am GMT

GBPJPY Pound yen

Key Points

  • The British Pound declined heavily today, and broke the 130.00 support versus the Japanese yen.
  • There was a decline of more than 4% in GBPJPY, talking the pair as low as 123.21.
  • In the UK today, the Halifax House Price Index report was released by the HBOS.
  • The outcome was positive, as it posted a rise of 0.1% in Sep 2016, compared with the previous month.

GBPJPY Technical Analysis

The British Pound was stumped today versus the Japanese yen, as it broke the 125.0 level and traded as low as 123.21. There was a tiny bullish trend line formed on the 4-hours chart of GBPJPY, which was broken during the recent downside move.

GBPJPY Technical Analysis

The pair recovered well after the recent losses, and currently trading above the 50% Fib retracement level of the last decline from the 132.23 high to 123.71 low.

However, there is no denial that the pair is under heavy bearish pressure and may move down once again.

UK Halifax House Price Index

Today in the UK, the Halifax House Price Index was released by the HBOS. The market was excepting the UK’s house prices and property price movements on a like-for-like basis to remain neutral at 0% in Sep 2016, compared with the previous month.

However, the outcome was a better than the forecast, as there was a rise of 0.1%. In terms of the yearly change, there was a rise of 5.8%, just as the market expected. Commenting on the report, the Halifax housing economist Martin Ellis, stated “House prices in the three months to September were largely unchanged compared with the previous quarter. The annual rate of growth eased from 6.9% in August to 5.8%”.

Overall, the British pound has recovered most of its recent losses, but it may remain under pressure as long as below 130.00.

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