Key Points
- The British Pound started a decline from 147.50 and traded below the 146.00 support against the Japanese Yen.
- There is a major bearish trend line with resistance near 146.15 formed on the hourly chart of GBPJPY.
- In Japan today, the Machinery New orders figure for March 2017 was released by the Cabinet Office.
- The result was below the forecast, as the Machinery New orders posted a rise of 1.4%, which was less than the forecast of 2.1%.
GBPJPY Technical Analysis
The British Pound after trading towards the 147.50 level against the Japanese Yen started a decline and moved below a couple of important support levels like 146.80 and 146.50. Later, the GBPJPY pair also cleared the 146.00 support and traded as low as 145.26.
The pair is currently moving higher, but a major bearish trend line with resistance near 146.15 on the hourly chart along with the 21 hourly simple moving average waiting to act as a resistance.
So, if the pair moves higher, one may consider selling near 146.00 or 146.15 in the short term with a stop above the 21 hourly simple moving average.
Japanese Machinery New Orders
Recently in Japan, the Machinery New orders figure for March 2017 was released by the Cabinet Office. The market was expecting an increase of around 2.1% in the index in March 2017, compared with the previous month.
The outcome was below the forecast, as the Machinery New orders posted a rise of 1.4%, which was less than the forecast of 2.1%. It was also lower than the last +1.5%. In terms of the yearly change, there was a decline of 0.7% in the order, which was way below the forecast of +0.6%. The report added that the “total value of machinery orders received by 280 manufacturers operating in Japan increased by 1.3% in March from the previous month on a seasonally adjusted basis. In January-March period it decreased by 7.9% compared with the previous quarter”.
Overall, the GBPJPY pair may correct a few pips higher in the near term towards 146.00, but likely to face resistance.
