GBPJPY Climbed Higher– 190.00 is Significant Resistance02 June, 2015 by Aayush Jindal in Market Analysis
- British Pound climbed higher against the Japanese Yen, but facing an uphill task around 190.00.
- UK Consumer Credit report will be released by the Bank of England, which can cause swing moves in GBPUSD and GBPJPY.
- In New Zealand, the Terms of Trade Index released by the Statistics New Zealand posted an increase of 1.5% in Q1 versus 1.7% forecast.
GBPJPY – Technical Analysis
The British Pound performed well against the Japanese Yen, as it managed to climb by more than 100 pips after trading as low as 188.52. The best part is that the GBPJPY pair is now trading above the 100 and 200 hourly simple moving average, suggesting that buyers are in control. The pair also managed to settle above the 50% Fib retracement level of the last wave from the 190.70 high to 188.52 low.
However, there is a monster resistance at 190.00, which stalled the upside in GBPJPY on a number of occasions. The pair is currently trading around the mentioned area, and it looks like buyers are struggling to clear the same. The 61.8% Fib retracement level is also playing its part and acting as a resistance.
Let us see how the pair reacts during the upcoming hours and whether it manages to settle above the 190.00 hurdle or not. On the downside, the 100 hourly MA might provide support to the pair, followed by the 189.40 level. The key area lies around the 200 hourly MA.
UK Consumer Credit
There is a major release in the UK today, as the Consumer Credit, i.e. an amount of money that individuals borrowed in the previous month will be released by the Bank of England. The forecast is of £1.000B in April 2015. Any disappointing reading might weigh on the British Pound in the near term.
New Zealand Terms of Trade Index
Earlier during the Asian session, the Terms of Trade Index, which is a measure of balance amount between import and export was released by the Statistics New Zealand. The forecast was lined up for an increase of 1.7% in the first quarter of 2015. However, the outcome missed the mark, as the New Zealand Terms of Trade Index rose by 1.5%.
The report mentioned that imported goods prices fell 5.1%, as petroleum and petroleum products were lower by 29%, adding to the decline.