Key Points
- The British Pound upside surge found resistance near 140.35 against the Japanese Yen.
- There is a crucial contracting triangle pattern formed with support at 139.75 on the hourly chart of GBPJPY.
- Earlier today in Japan, the Tertiary Industry Index for Feb 2017 was released by the Ministry of Economy, Trade and Industry.
- The outcome was better than the forecast, as there was a rise of 0.2% in the index, compared with the last 0%.
GBPJPY Technical Analysis
The British Pound surged higher this past week against the Japanese Yen to trade above 138.00. The GBPJPY pair also broke the 1.236 extension of the last decline from the 137.50 high to 135.45 low, opening the doors for more gains.
The pair recently traded as high as 140.34 where it faced resistance and current correcting lower. At the moment, the pair is heading lower towards the 23.6% Fib retracement level of the last wave from the 136.14 low to 140.34 high and the 21 hourly simple moving average.
However, the pair remains supported near a crucial contracting triangle pattern at 139.75 on the hourly chart. Any major dips close to 139.70 or 21 hourly simple moving average may be considered as buying opportunity.
Japanese Tertiary Industry Index
Today in Japan, the Tertiary Industry Index for Feb 2017 was released by the Ministry of Economy, Trade and Industry. The forecast was lined up for the domestic service sector indicator in Japan to remain stable with no change in Feb 2017, compared with the previous month.
The result was better than the forecast, as there was a rise of 0.2% in the index, compared with the last 0%. Another release was of the Nikkei Manufacturing PMI, which also posted a rise to 52.8 from 52.4.
Overall, the results were positive for the Japanese Yen, which is why GBPJPY is correcting lower, but it remains supported near 139.70.
