Key Points
- The British Pound declined recently against the Japanese yen, and traded below the 127.50 support.
- There were two bullish trend lines formed on the hourly chart of GBPJPY, which were broken for a downside move towards 126.80.
- Today in the UK, the Nationwide Housing Prices report was released during the London session.
- The market was expecting a minor rise of 0.2% in Oct 2016, compared with the previous month.
GBPJPY Technical Analysis
The British Pound faced a lot of selling pressure lately, and declined below the 127.50 support against the Japanese yen. There were a couple of important bullish trend lines formed on the hourly chart, which were broken to extend the decline towards 126.80.
If the pair corrects higher, the broken trend line may now act as a resistance near the 23.6% Fib retracement level of the last decline from the 129.03 high to 126.82 low.
Any further gains may take the pair towards the next resistance near 127.80, which is positioned with the 21 hourly simple moving average.
UK Nationwide Housing Prices
Today in the UK, the Nationwide Housing Prices, which shows the value of the houses prices in UK and indicate current movements in the housing market was reported.
The market was expecting a rise of 0.2% in Oct 2016, compared with the previous month. However, the result was disappointing, as there was no change in prices. In terms of the yearly change, there was an increase of 4.6% in Oct 2016, compared with the same month a year ago, but the market was expecting a rise of 5%.
Overall, the British Pound may remain under a bearish pressure, and there is a high chance of the GBPJPY heading back towards the last swing low of 126.82 and even break it.
