Key Points
- The British Pound declined heavily and moved below the 145.00 support against the Japanese Yen.
- There is a contracting triangle pattern with resistance at 144.40 forming on the hourly chart of GBPJPY.
- Today in Japan, the Eco Watchers Survey for July 2017 was released by the Cabinet Office.
- The outcome was below the forecast, as the current survey index posted a decline from 50.0 to 49.7.
GBPJPY Technical Analysis
The British Pound after setting a top near the 146.75 level started a downside move against the Japanese Yen. The GBPJPY pair fell sharply and broke a major bullish trend line at 146.30 on the hourly chart and later cleared the 21 hourly simple moving average.
The pair traded as low as 144.11 and currently forming a contracting triangle pattern with resistance at 144.40 on the hourly chart.
On the upside, the triangle resistance is near the 23.6% Fib retracement level of the last decline from the 145.27 high to 144.11 low along with the 21 hourly simple moving average. So, if the pair moves higher, it is likely to face sellers near 144.40.
Japan’s Eco Watchers Current and Outlook Index
Today in Japan, the Eco Watchers Survey for July 2017 was released by the Cabinet Office. The market was positioned for a decline in the current index from the last reading of 50.0 to 49.8.
The actual result was below the forecast, as the current survey index posted a decline from 50.0 to 49.7. Moreover, the Outlook index was expected to increase from 50.5 to 50.6 in July 2017. However, the end result was below the forecast, as there was a decline from 50.5 to 50.3.
Overall, the GBPJPY pair might continue to decline and could even break the 144.10 support area for a move towards 143.80.
