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Dec 05, 2016

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Market Analysis

Home » Featured » GBPJPY – Look for Sells

GBPJPY – Look for Sells

Posted by FXTimes in Featured - January 21st, 2016 11:51 am GMT

British Pound GBPCHF

Key Points

  • British Pound found buyers near 164.00 against the Japanese Yen, and started correcting higher.
  • There is a major bearish trend line formed on the 4-hours chart, which may stall gains moving ahead.
  • Today in the UK the RICS Housing Price Balance survey was released by the Royal Institution of Chartered Surveyors.
  • The RICS Housing Price Balance registered a reading of 50% in December 2015, just as the market expected.

Technical Analysis

The GBPJPY pair formed a short-term bottom and traded back towards 166.00. However, buyers need to be careful, as there is a major bearish trend line formed on the 4-hours chart that may stall gains in the near term.

GBPJPY

Moreover, the 50% Fib retracement level of the last drop from the 169.10 high to 163.94 may also act as a barrier and push the pair down.

On the downside, the 165.00 area can be seen as a support.

UK RICS Housing Price Balance

Today, RICS Housing Price Balance survey, which presents housing costs in the UK and shows the strength of the UK housing market was released by the Royal Institution of Chartered Surveyors. The forecast was lined up for a change of 50% December 2015. The result was as forecasted, as the RICS Housing Price Balance registered a reading of 50% in December 2015.

The report stated “housing market has experienced an unusually buoyant December. Those in the industry have been speculating that this is the result of the Chancellor’s announcement last November. Potential buy-to-let investors are looking to pick up properties before the increased stamp duty levy comes into force next April”.

In short, if the GBPJPY corrects higher from the current levels, then once might consider selling in the short term.

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