Key Points
- The British after trading as low as 141.26 against the Japanese Yen started recovering higher.
- There is an ascending channel pattern with support at 142.30 forming on the hourly chart of the GBPJPY pair.
- Recently in Japan, the Industrial Production for June 2017 was released by the Ministry of Economy, Trade and Industry.
- The outcome was above the forecast of +1.6%, as there was a rise of 2.2% (MoM).
GBPJPY Technical Analysis
The British Pound was under a lot of pressure this past week and traded below the 143.80 and 143.00 support levels against the Japanese Yen. The GBPJPY pair traded as low as 141.26 before a recovery was initiated.
The pair moved higher and broke a bearish trend line with resistance near 142.20 on the hourly chart along with the 21 hourly simple moving average.
At the moment, the pair is following an ascending channel pattern with support at 142.30 on the hourly chart. The pair is currently above the 61.8% Fib retracement level of the last decline from the 143.33 high to 141.26 low. Therefore, there are high chances of GBP/JPY trading towards the last swing high of 143.33 or even 143.50.
Japan’s Industrial Production
Today in Japan, the Industrial Production for June 2017 was released by the Ministry of Economy, Trade and Industry. The market was positioned for an increase of 1.6% in the production compared with the previous month.
The actual result was above the forecast of +1.6%, as there was a rise of 2.2%. Moreover, the Capacity Utilization for June 2017 was also released by the Ministry of Economy, Trade and Industry. The outcome was positive, as there was an increase of 2.1%, a lot better that the last decline of 4.1%.
Overall, the GBPJPY pair may correct a few pips lower, but remains supported on the downside near the 142.50-30 levels.
