Key Points
- The British Pound made a nice upside move and traded above 146.00 against the Japanese Yen.
- There is a major bullish trend line with support at 146.20 forming on the hourly chart of GBPJPY.
- Today in Japan, the Nikkei Manufacturing PMI for June 2017 was released.
- The outcome was better than the forecast, as there was a rise in the PMI from 52.0 to 52.4.
GBPJPY Technical Analysis
The British Pound started a nasty uptrend from the 141.00 handle against the Japanese Yen. The GBPJPY pair broke many resistances on the way up like 142, 143, 145 and the 21 hourly simple moving average.
The pair recently traded as high as 146.83 where sellers appeared and a minor correction was initiated. The pair has moved below the 23.6% Fib retracement level of the last wave from the 145.14 low to 146.83 high.
It may trade towards 146.00 to fill buy orders. Moreover, there a major bullish trend line with support at 146.20 forming on the hourly chart of GBPJPY. Buying dips near 146.00 and the 21 hourly simple moving average might be considered in the short term.
Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI for June 2017 was released. The market was positioned for no major change in the PMI from the last reading of 52.0 and the PMI was expected to post an expansion.
The actual result was better than the forecast, as there was a rise in the PMI from 52.0 to 52.4. The report added that the “performance of the Japanese manufacturing sector continued to improve during June, extending the current sequence of expansion to ten months. Growth was supported by ongoing gains in both production and new orders, although in both cases rates of expansion weakened“.
Overall, the GBPJPY pair may continue to move higher and might break 146.80 in the near term.
