Key Points
- The British Pound recently corrected lower from the 142.08 high against the Japanese yen.
- There is a bearish trend line formed on the hourly chart of GBPJPY, acting as a resistance near 141.50, and preventing upsides.
- Today in Japan, the Nikkei Manufacturing PMI was published.
- The result was positive, as there was a rise from the last reading of 52.4 to 52.8 in Jan 2017 (preliminary).
GBPJPY Technical Analysis
The British Pound was in a good uptrend until it found sellers near 142.00-142.20 against the Japanese yen, and started correcting lower. The correction went as low as 140.82 before the GBPJPY pair started moving higher.
The pair is currently facing a resistance near 141.50 in the form of a bearish trend line formed on the hourly chart along with the 50% Fib retracement level of the last decline from the 142.08 high to 140.82 low.
The pair is now above the 21 hourly simple moving average, and trading with positive bias. So, there is a chance of a break above 141.50 going forward for further gains in the short term.
Nikkei Manufacturing PMI
Today in Japan, the Nikkei Manufacturing PMI that gives an early snapshot of the health of manufacturing sector in Japan was published. It was forecasted to decrease from the last reading of 52.4 to 52.3 in Jan 2017.
However, the result was positive, as there was an increase from the last reading of 52.4 to 52.8 in Jan 2017 (preliminary). There was a minor increase the price of Japanese yen after the release, but soon it trimmed its gains.
Overall, it looks like the British Pound may soon attempt to break the 141.50 resistance and trend line for more gains back towards the 142.00 handle.
