Key Points
- The British Pound declined heavily recently and moved below 148.50 against the Japanese Yen.
- There is a major bearish trend line forming with resistance at 148.80 on the hourly chart of GBPJPY.
- Recently in Japan, the Labor Cash Earnings report for August 2017 was released by the Ministry of Health, Labour and Welfare.
- The outcome was above the forecast of +0.5%, as the Labor Cash Earnings increased 0.9% (YoY).
GBPJPY Technical Analysis
The British Pound came under a lot of pressure this week and traded below the 149.00 support area against the Japanese Yen. The GBPJPY pair fell sharply and even settled below the 148.50 level and the 21 hourly simple moving average.
The pair traded as low as 147.70 recently and currently consolidating losses. On the upside, an initial resistance is around the 23.6% Fib retracement level of the last decline from the 149.91 high to 147.70 low.
Moreover, there is a major bearish trend line forming with resistance at 148.80 on the hourly chart. The 50% Fib retracement level of the last decline from the 149.91 high to 147.70 low is also waiting along with the 21 hourly simple moving average near 148.80 to act as key resistance for further upsides.
Japan’s Labor Cash Earnings
Recently in Japan, the Labor Cash Earnings report for August 2017 was released by the Ministry of Health, Labour and Welfare. The market was positioned for the earnings to increase by 0.5% compared with the same month a year ago.
The actual result was above the forecast of +0.5%, as the Labor Cash Earnings increased 0.9%. However, the last reading was revised down from -0.3% to -0.6%. Moreover, the Japanese Foreign-exchange reserves figure for Sep 2017 was released by Ministry of Finance. The result was neutral, as the reserves were $1,266.3B, almost similar to the last $1,268.0B.
Overall, the GBPJPY pair might continue to decline and could even break the recent low of 147.70 in the near term.
