Key Points
- The British Pound after trading as low as 139.63 against the Japanese yen found support.
- The GBPJPY pair is currently correcting higher, but remains below a major bearish trend line with resistance at 141.00 on the hourly chart.
- Today, the UK’s Rightmove House Price Index for Jan 2017 was released.
- The result was better than the forecast, as there was a rise of 2% in Jan 2017, compared with the previous month.
GBPJPY Technical Analysis
The British Pound traded lower this past week against the Japanese yen, and recently traded towards 139.60. The GBPJPY pair started recovering, and moving higher towards 140.80. However, there are many resistances on the way up for the pair near 141.00.
The most important one is near a major bearish trend line with resistance at 141.00 on the hourly chart. It also coincides with the 21 hourly simple moving average 141.10.
So, it won’t be easy for the pair to break 141.00 area, which is why one might consider selling rallies with a tight stop.
UK Rightmove House Price Index
Today in the UK, the Rightmove House Price Index that provides a sample of residential property prices and shows the strength of the UK housing market was released for Jan 2017. The market was expecting an increase of around 1% in the index in Jan 2017, compared with the previous month.
The result was better than the forecast, as there was a rise of 2% in Jan 2017. The report added that “Steady start to 2017 with 0.4% (+£1,086) rise in the price of property coming to market, very similar to the 0.5% rise recorded in January 2016. Encouraging early signs of home-mover activity, with visits to Rightmove since Boxing Day up by 5% even when compared to last year’s buy-to-let surge”.
Overall, there is a chance of further gains in the GBPJPY pair, but is likely to face resistance near the trend line at 141.00.
