Key Points
- The British Pound has recovered well from the 148.15 support against the Japanese Yen.
- There is a major bearish trend line forming with resistance at 149.00 on the hourly chart of GBPJPY.
- Recently in Japan, the foreign bond investment (Nov 10, 2017) figure was released by Ministry of Finance.
- The outcome was above the forecast of ¥-200.0B as the investment was ¥-105.0B.
GBPJPY Technical Analysis
The British Pound declined recently and moved towards the 148.00 handle against the Japanese Yen. The GBPJPY pair traded as low as 148.11 and later started correcting higher toward the 148.40-50 levels and the 21 hourly simple moving average.
The pair has moved above the 38.2% Fib retracement level of the last decline from the 149.58 high to 148.11 low. However, there is a major bearish trend line forming with resistance at 149.00 on the hourly chart.
At the moment, the 21 hourly SMA and the 50% Fib retracement level of the last decline from the 149.58 high to 148.11 low are acting as a hurdle for buyers. It seems like a break above 149.00 won’t be easy and there can be a downside move back toward 148.60.
Japan’s Foreign Bond Investment
Recently in Japan, the foreign bond investment (Nov 10, 2017) figure was released by Ministry of Finance. The market was positioned for the foreign bond investment to be around ¥-200.0B compared with the last ¥-729.6B.
The actual result was above the forecast of ¥-200.0B as the investment was ¥-105.0B. Looking at the foreign investment in Japan stocks figure (Nov 10, 2017), it came in at ¥182.4B, more than the last revised figure of ¥4.8B.
Overall, the GBPJPY pair might find it difficult to break and settle above 149.00 in the short term, and therefore, there can be a minor downside reaction.
