Key Points
- The British pound climbed higher recently against the Japanese yen to settle above 142.00.
- There is a crucial bullish trend line with support at 141.50 formed on the hourly chart of GBPJPY.
- Today in Japan, the Tertiary Industry Index was released by the Ministry of Economy, Trade and Industry.
- The result was below the forecast, as there was a decline of 0.4% in Dec 2016, lower than the last revised rise of 0.3%.
GBPJPY Technical Analysis
The British Pound gained momentum recently against the Japanese yen and started an uptrend from the 138.80 low. The GBPJPY pair moved higher, and broke the 21 hourly simple moving average and the 141.00 resistance.
The pair traded as high as 142.36, and currently correcting lower. It remains supported near the 23.6% fib retracement level of the last wave from the 139.80 low to 142.36 high.
There is also a crucial bullish trend line with support at 141.50 formed on the hourly chart of GBPJPY, which coincides with the 38.2% fib retracement level of the last wave from the 139.80 low to 142.36 high. So, there is a nice support formation starting from 141.76 to 141.40.
Japanese Tertiary Industry Index
Today during the Asian session, the Japanese Tertiary Industry Index, which indicates the domestic service sector in Japan was released by the Ministry of Economy, Trade and Industry. The market was expecting a rise of around 0.2% in Dec 2016, compared with the previous month.
However, the result was below the forecast, as there was a decline of 0.4% in Dec 2016. The last reading was revised to 0.3% from 0.2%. So, the current outcome was even worse compared with the last increase.
Overall, the British Pound remained supported on the downside near 141.60-50 against the Japanese yen, and buying may be considered.
