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Market Analysis

Home » Featured » GBPJPY – Can Buyers Take it Higher?

GBPJPY – Can Buyers Take it Higher?

Posted by FXTimes in Featured - February 17th, 2016 2:22 pm GMT

British Pound Sterling GBPUSD

Key Points

  • British Pound suffered losses recently, but today it managed to gain bids against the Japanese Yen.
  • There was a support trend line on the hourly chart, which was cleared earlier to ignite downside move.
  • There is now a major resistance formed near 163.60-80 area, where there is a trend line with 100 simple moving average acting as a hurdle.
  • UK Claimant Count Change released by the National Statistics posted a better than expected reading and came in at -14.8K in Jan 2016.

Technical Analysis

As mentioned, there a support trend line on the hourly chart of the GBPJPY pair, which was cleared earlier. However, later the pair managed to climb back higher from the 161.60 lows. Currently, it is facing sellers near a minor bearish trend line on the hourly chart.

GBPJPY

The highlighted trend line is coinciding with the 100 simple moving average, which increases its importance in the short term.

Only a break above the highlighted trend line and 100 MA may take the pair higher towards the 200 MA.

UK Claimant Count Change

There was a monster release in the UK today, as the Claimant Count Change, representing the number of unemployment people in the UK was released by the National Statistics. The market was expecting a change of -3.0K in Jan 2016. However, the result was above the expectation, as the Claimant Count Change came in at -14.8K.

If we look at the UK ILO Unemployment Rate, then the market was expecting a decline in the unemployment rate from 5.1% to 5%, but the result was not as forecasted. The UK ILO Unemployment Rate remained at 5.1%.

Overall, the British Pound gained after the release, and if buyers manage to clear the 100 MA, then more gains are possible.

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