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Dec 08, 2016

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Market Analysis

Home » Technical Analysis » Daily » GBPJPY To Continue Trading Higher?

GBPJPY To Continue Trading Higher?

Posted by FXTimes in Daily - March 29th, 2016 12:47 pm GMT

pound-sterling-us-dollar

Key Points

  • British Pound climbed higher against the Japanese Yen, and looks set for more gains in the near term.
  • There were a couple of bearish trend lines formed on the 4-hours chart of the GBPJPY pair, which were broken to open the way for more gains.
  • Today, Japan’s Unemployment Rate released by the Ministry of Health, Labour and welfare posted an increase from 3.2% to 3.3% in Feb 2016.
  • Moreover, the Japanese Overall Household Spending reported by the Ministry of Internal Affairs and Communications increased 1.2% in Feb 2016.

Technical Analysis

The British Pound crushed the Japanese Yen buyers, as there was a solid upside noted in the GBP/JPY pair. The bulls also managed to break a couple of bearish trend lines formed on the 4-hours chart to set the tone for more upsides in the near term.

GBPJPY

The pair is now positioned above the 100, 200 and 50 hourly simple moving average, which may later act as a support area if the GBPJPY pair moves down from the current levels.

On the upside, a break above 162.40 could push the pair towards 162.80.

Japan’s Unemployment Rate

Today during the Asian session, there were a couple of economic releases in Japan. The most important one was the Unemployment Rate by the Ministry of Health, labor and welfare. It was published by the Japan Statistics Bureau and the market was not expecting any change in the unemployment rate in Feb 2016.

However, the outcome missed the mark, as the Japanese Unemployment Rate climbed from 3.2% to 3.3% in Feb 2016. The Japanese Yen bulls were dejected, and as a result, there was a downside move in the yen.

Overall, the GBPJPY pair looks set for more gains in the near term, and buying remains a good option.

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