GBPJPY – British Pound Looking For Momentum Vs Yen19 October, 2016 by Aayush Jindal in Market Analysis, Technical Analysis
GBPJPY – British Pound Looking For Momentum Vs Yen
- The British Pound gained traction near 126.00 against the Japanese yen, and traded higher.
- There was a major triangle pattern on the 4-hours chart of GBPJPY, which is broken to clear the way for more upsides.
- Today, the UK Claimant Change figure will be released by the National Statistics, which is forecasted to post 2.6K in Sep 2016.
- The UK ILO Unemployment Rate is forecasted to remain stable at 4.9% in Sep 2016.
GBPJPY Technical Analysis
The British Pound recovered recently from the 126.00 support against the Japanese yen, and it looks like the GBPJPY pair may gain further in the short term.
The pair enjoyed a minor upside move, and managed to clear a major triangle pattern on the 4-hours chart. The pair is also above the 50% Fib retracement level of the last decline from the 129.61 high to 124.77 low, which is a positive sign.
The 4-hours RSI has moved above the 50 level, which means the British Pound buyers may attempt for further gains going forward in GBPJPY towards 128.00. On the downside, the broken triangle trend line may now act as a support area in the short term.
UK Claimant Change
Today in the UK, there are a couple of important releases. The Claimant Change figure, the ILO Unemployment Rate and the Average Earnings report will be released by the National Statistics.
The UK Claimant Change is forecasted to post 2.6K in Sep 2016, and ILO Unemployment Rate may remain at 4.9%. Overall, the market is not expecting any major decline, which may help the British Pound in the near term.
Australia’s Westpac Leading Index
Today in Australia, the Westpac Leading Index, which tracks nine gauges of economic activity, including share prices and telephone installations was released by the Melbourne Institute. The report was positive, as there was an increase of 0.1% in Sep 2016, compared with the previous month.
Commenting on the report, the Westpac’s Chief Economist, Bill Evans, stated, “Our research indicates that the new Index should detect economic turning points earlier. Readings of the new Index will also be available a full month before those of the existing Index and will be largely free of significant revisions. This is expected to provide a considerably more reliable and earlier guide to economic conditions.”
The Aussie dollar was seen trading higher during the Asian session, and may remain in an uptrend for some time.