Key Points
- The British Pound after dipping towards the 135.40 level against the Japanese yen found support and recovered.
- There is a bullish trend line formed on the hourly chart of GBPJPY, which may act as a support near 136.50.
- Today, the Japanese All Industry Activity Index was released by the Ministry of Economy, Trade and Industry.
- The outcome was stable, as there was an increase of 0.2% in the index in Sep 2016.
GBPJPY Technical Analysis
The British Pound after trading as high as 137.55 against the Japanese yen declined, and traded towards the 135.40 area. The Pound buyers managed to protect further declines, and pushed the GBPJPY pair higher back above the 136.00 handle.
There is a bullish trend line formed on the hourly chart of GBPJPY, which may act as a major support on the downside at 136.50, as the 21 hourly simple moving average is also positioned above it.
On the upside, an initial resistance is at 137.24, followed by the 137.40 level. The next stop above them would be near 137.60.
Japanese All Industry Activity Index
Today, the Japanese All Industry Activity Index, which captures the monthly change in overall production by all industries of the Japanese economy was released by the Ministry of Economy, Trade and Industry.
The market was hoping for a minor increase in Sep 2016, compared with previous month. The result was stable as there was a rise of 0.2%. In another release, the Merchandise Trade Balance report was published by the Ministry of Finance. The outcome was disappointing, as the trade surplus was ¥496.2B, less than the forecast of ¥615.4B in Oct 2016.
Overall, the British Pound may decline a few pips towards 136.50 vs the Japanese yen, but it remains supported.
