Capital Trust
Capital Trust
images

Sep 25, 2016

04:46 AM EDT


  • New York close
  • London close
  • Tokyo close
  • Sydney close
Market Analysis

Home » Technical Analysis » Daily » GBPJPY – British Pound Facing Offers Vs Japanese Yen

GBPJPY – British Pound Facing Offers Vs Japanese Yen

Posted by FXTimes in Daily - August 16th, 2016 9:16 am GMT

GBPJPY Pound yen

Key Points

  • The British Pound remained in a downtrend versus the Japanese yen and may continue to trade lower.
  • There is a support trend line formed on the hourly chart of the GBPJPY pair, which prevents losses every time there is a decline.
  • In the UK today, the Consumer Price Index was released by the National Statistics.
  • There was a decline of 0.1% in the CPI in July 2016, compared with the previous month.

Technical Analysis

The British Pound traded lower recently against the Japanese yen before finding bids near a support trend line formed on the hourly chart of the GBPJPY pair. It is currently recovering but remains below the 21 hourly simple moving average.

GBPJPY – British Pound Facing Offers Vs Japanese Yen

On the upside, the 38.2% fib retracement level of the last drop from the 132.50 high to 129.33 low is also acting as a barrier for a recovery.

It looks like a recovery in the pair won’t be easy as long as the pair is below the 21 hourly SMA.

UK CPI

Earlier today, the UK Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services was released by the National Statistics.

The market was expecting a decline of 0.1% in the CPI in July 2016, compared with the previous month, and the result was the same. In terms of the yearly change, the Consumer Price Index rose 0.6%, more than the forecast of 0.5%. The report added that “The main contributors to the increase in the rate were rising prices for motor fuels, alcoholic beverages and accommodation services, and a smaller fall in food prices than a year ago. These upward pressures were partially offset by falls in social housing rent, and falling prices for certain games and toys“.

Overall, the GBPJPY pair may recover a few pips in the near term, but as long as it is below the 21 hourly SMA, it may head lower.

Share!Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+

No comments yet.

You must be logged in to post a comment.

Forex, Commodities, Indices

Daily Updates

Daily Updates


Get the latest fundamental analyses, technical analyses and the most up-to-date Forex news catered to your interests, everyday.