- British Pound traded higher and tested the 170.00 resistance area against the Japanese Yen.
- Sellers managed to defend the stated level and pushed the GBPJPY pair down.
- There is a chance of an inverse head and shoulders forming on the hourly chart, which may take the pair higher moving ahead.
- In the UK, the Nationwide Housing Prices report was released, which posted an increase of 0.3% in Jan 2016, less than the forecast of 0.6%.
The GBPJPY pair after finding sellers near the 170.00 area moved down, and currently finding buyers near the 50 hourly simple moving average. There is a possibility that the pair may form an inverse head and shoulders on the hourly chart, which may ignite a rally moving ahead.
A break above the neckline resistance area of 170.00-20 could call for a move towards the 171.00 area.
On the downside, we need to keep an eye on the 100 hourly simple moving average as a support for the GBPJPY pair.
UK Nationwide Housing Prices
In the UK, the Nationwide Housing Prices, which shows the value of the houses prices in UK and indicate current movements in the housing market that is considered as a sensitive factor was reported. The forecast was lined up for an increase of 0.6% in Jan 2016, compared with the preceding month. However, the outcome was lower than the forecast, as the Nationwide Housing Prices increased 0.3%.
In terms of the yearly change, the Nationwide Housing Prices was again lower than the forecast. The Nationwide Housing Prices posted an increase of 4.4% in Jan 2016, compared with the same month a year ago.
Overall, the report was not impressive, but it may not impact the GBPJPY pair in the short term. We need to keep an eye on the 100 MA as a support in the short term.