GBP/JPY Could Continue Higher Towards 149.5007 November, 2018 by Aayush Jindal in Market Analysis
- The British Pound recovered recently and moved above the 146.50 resistance against the Japanese Yen.
- There was a break above two bearish trend lines with resistance at 145.60 and 146.90 on the 4-hours chart of GBP/JPY.
- The UK BRC Like-For-Like Retail Sales in Oct 2018 increased 1.3% (YoY).
- Today, the UK Halifax House Price Index for Oct 2018 will be released, which is forecasted to rise 0.3% (MoM).
GBPJPY Technical Analysis
The British Pound started a solid upward move from the 142.80 support area against the Japanese Yen. The GBP/JPY pair rallied above the 145.00 and 146.00 resistance levels to move into a positive area.
Looking at the 4-hours chart, the pair moved higher after trading as low as 142.77. It broke many resistances near 145.00 and settled above the 200 simple moving average (4-hours, green).
During the rise, there was a break above two bearish trend lines with resistance at 145.60 and 146.90 on the same chart. Besides, the pair broke the 76.4% Fib retracement level of the last major drop from the 149.50 high to 142.77 low.
It means there are high chances that the pair could continue to move higher towards the last swing high at 149.50, which is a significant hurdle for buyers. Above 149.50, the pair will most likely rally above the 150.00 handle.
If there is a downside correction, an initial support is near the 147.20 level and the 200 simple moving average (4-hours, green). Below the 200 SMA, the pair may well correct towards the 146.00 support and the 100 simple moving average (4-hours, red).
The overall price action is positive and it seems like both GBP/USD and GBP/JPY may perhaps continue to recover in the near term.
Economic Releases to Watch Today
- UK Halifax House Price Index for Oct 2018 (MoM) – Forecast +0.3%, versus -1.4% previous.
- UK Halifax House Price Index for Oct 2018 (3m/YoY) – Forecast +1.2%, versus +2.5% previous.
- Euro Zone Retail Sales for Sep 2018 (YoY) – Forecast +0.7%, versus +1.8% previous.
- Euro Zone Retail Sales for Sep 2018 (MoM) – Forecast +0.1%, versus -0.2% previous.
- US Consumer Credit Change Sep 2018 – Forecast $16.50B, versus $20.00B previous.