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Market Analysis

Home » Featured » GBPJPY – Japanese Yen Continue To Gain Bids

GBPJPY – Japanese Yen Continue To Gain Bids

Posted by FXTimes in Featured - March 15th, 2016 12:33 pm GMT

British Pound GBPCHF

Key Points

  • British Pound traded down very sharply against the Japanese yen, as the latter one gained bids after the events during the Asian sessions.
  • There was a bullish trend line formed on the hourly chart of the GBPJPY pair, which was breached by sellers to ignite a downside break.
  • Today, the BoJ Interest Rate Decision was announced by the Bank of Japan in which the central back kept the rates unchanged.
  • Moreover, the Tertiary Industry Index released by the Ministry of Economy, Trade and Industry posted a rise of 1.5% in Jan 2016, compared with the forecast of 0.4%.

Technical Analysis

The British pound tumbled against the Japanese Yen recently and traded below the 100 hourly simple moving average. Moreover, there was a bullish trend line formed on the hourly chart of the GBPJPY pair, which was broken during the downside drift.

GBPJPY

The pair is currently trading near the 160.00 handle and that is the reason why it may correct a few pips higher.

Any move higher from the current levels may find resistance near 160.40-50 levels.

Japanese Tertiary Industry Index

Today, in Japan there were a couple of important economic releases lined up, including the BoJ Interest Rate Decision. Moreover, the Tertiary Industry Index, which indicates the domestic service sector in Japan such as information and communication was released by the Ministry of Economy, Trade and Industry. The market was expecting a rise of 0.4% in Jan 2016, compared with the previous month. However, the result was above the forecast, as the index rose 1.5%.

The report added “Industries that contributed to the increased are as follows:1.Wholesale Trade, 2.Finance and Insurance, 3.Business-related Services, 4.Real Estate, 5.Transport and Postal Activities, 6.Medical, Health Care and Welfare, 7.Electricity, Gas, Heat Supply and Water, 8.Retail Trade”.

Overall, the GBPJPY pair remains at a risk of a downside move, and any corrections from here may find sellers.

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