GBPJPY – British Pound May Continue To Bleed Vs Yen and Dollar06 October, 2016 by Aayush Jindal in GBPJPY, Market Analysis, Technical Analysis
GBPJPY – British Pound May Continue To Bleed Vs Yen and Dollar
- The British Pound declined heavily recently not only against the US dollar, but faced sellers against the Japanese yen as well.
- There are two bearish trend lines formed on the 4-hours chart of the GBPJPY pair, which may act as a resistance in the short term.
- The GBPUSD pair also remains under heavy selling pressure, and created a new 31 year old lately.
- In Japan, the Foreign bond investment released by Ministry of Finance came in at ¥-636.8B, compared with the last reading of ¥1,178.6B.
GBPJPY Technical Analysis
The British Pound was under a lot of bearish pressure due to Brexit trade talks. The GBPUSD and GBPJPY pair declined. Let’s see how much more losses we may witness going forward.
The GBPJPY pair after trading lower found support at 129.64, and started recovering. However, the upside move may be limited. As can be seen in the 4-hours chart, there are two bearish trend lines formed.
If the pair continues to correct higher, then these trend lines may act as a hurdle and prevent a recovery around 131.80-132.00. It looks like sellers remain in control, and may continue to put a lot of pressure on the bulls.
Japanese Foreign Bond Investment
Today in Japan, the foreign bond investment, which referrers to bonds issued in a domestic market by a foreign entity in the domestic market’s currency was released by Ministry of Finance.
The outcome was mixed, as it came in at ¥-636.8B, compared with the last reading of ¥1,178.6B. Similarly, the Foreign investment in Japan stocks in Japan posted a reading of ¥251.7B, compared with the last reading of ¥-211.7B.
US Initial Jobless Claims
Today, the US will witness the release of the Initial Jobless Claims by the US Department of Labor. The market is aligned for the number of people filing first-time claims for state unemployment insurance to increase from the last reading of 254K to 256K.
If there is a major increase in the Initial Jobless Claims, then it may give an opportunity to the GBPUSD traders to put the pair on a path to recovery. But, the overall trend for the British Pound remains bearish in the short term.