Key Points
- The British Pound made a downside move from the 142.90 high against the Japanese Yen, but remains supported.
- There is a crucial bullish trend line forming with support at 142.00 on the hourly chart of the GBPJPY pair.
- Today in Japan, the Capital Spending for Q2 2017 was released by the Ministry of Finance Japan.
- The outcome was below the forecast of +8%, as there was an increase in spending by 1.5%.
GBPJPY Technical Analysis
The British Pound remains in a bullish trend above 142.00 against the Japanese Yen. The GBPJPY pair recently traded as high as 142.90 before starting a correcting. The pair traded as low as 141.55 and then corrected towards the 76.4% Fib retracement level of the last drop from the 142.90 high to 141.55 low.
It is again moving lower towards 142.00 and trading below the 21 hourly simple moving average. There is a crucial bullish trend line forming with support at 142.00 on the hourly chart, which is a major buy zone.
As long as the pair is above the trend line support at 142.00, it is likely to continue moving higher in the near term.
Japan’s Capital Spending
Today in Japan, the Capital Spending for Q2 2017 was released by the Ministry of Finance Japan. The market was positioned for a rise of around 8% compared with the last increase of 4.5%.
The actual result was below the forecast of +8%, as there was an increase in spending by 1.5%. Moreover, the Vehicle sales for August 2017 was released by the Japan Automobile Manufacturers Association. It came in at 4.7%, up from the last -1.1% compared with the same month a year ago.
Overall, the GBPJPY pair is likely to continue higher and could even trade back towards 142.90 in the near term.
