Key Points
- The British Pound managed to trade higher versus the Japanese yen, and remained above the 129.50 support.
- There is a bullish trend line formed on the hourly chart, acting as a support for GBPJPY at 129.60-50.
- Today in Japan, the Coincident Index was released by the Cabinet Office.
- The result was better, as there was a rise in the index from the last revised reading of 111.9 to 112.1 in Sep 2016 (preliminary reading).
GBPJPY Technical Analysis
The British Pound remained in an uptrend against the Japanese yen, and traded above the 129.50 resistance area, which can now act as a support. There is a bullish trend line formed around the same levels as well on the hourly chart of GBPJPY.
The pair recently broke a minor bearish trend line, and the 129.70 resistance to open the doors for more gains in the short term.
It looks like the pair may continue to gain traction, and it can even clear the last swing high of 130.26 for a move towards the 130.40 level.
Japanese Coincident Index
Today in Japan, the Coincident Index, which is a single summary statistic that tracks the current state of the Japanese economy was released by the Cabinet Office.
The market was expecting a minor rise from the last reading of 112.0 in Sep 2016 (preliminary). The result was mixed, as there was a rise to 112.1, but the last reading was revised down to 111.9. On the other hand, the Leading Economic Index, which is an economic indicator that consists of 12 indexes posted a decline from the last reading of 100.9 to 100.5 in Sep 2016 (preliminary).
Overall, the Japanese yen may lose the ground, and could decline vs the British Pound going forward.
