Key Points
- The British Pound recently moved higher and broke the 138.00 level against the Japanese yen.
- The GBPJPY pair also cleared a bearish trend line with resistance at 138.15 on the hourly chart.
- In Japan today, the Securities investment report (March 24, 2017) was released by Ministry of Finance.
- The result was a bit lower, as it came in at ¥-151.6B, compared with the last revised reading of ¥150.9B.
GBPJPY Technical Analysis
The British Pound after a decline towards 137.50 against the Japanese yen found support and recovered. The GBPJPY pair was able to clear the 138.00 handle and a bearish trend line with resistance at 138.15 on the hourly chart.
The pair also moved below the 21 hourly simple moving average at 138.25, but soon faced sellers near 138.70 and started trading lower. It is currently attempting a break below the 21 hourly SMA at 138.25.
If the pair succeeds in breaking the 138.25 support, it might test the broken trend line. An initial support is around 138.10, followed by 138.00. It the pair holds 138.00, there can be another upside move to retest a newly formed connecting bearish trend line at 138.50.
Japanese Securities Investment
Recently in Japan, the Securities investment report (March 24, 2017) was released by Ministry of Finance. The market was expecting the foreign bond investment to remain positive, compared with the last ¥149.4B.
The outcome was a bit lower, as it came in at ¥-151.6B. The last reading was also revised to ¥150.9B. Similarly, the foreign investment in Japan stocks posted a bit lower reading, as it came in at ¥-754.3B, compared with the last revised reading of ¥-585.3B.
Overall, the GBPJPY pair might head lower, but it could find bids near 138.10 for yet another minor upside move towards 138.45.
