Japanese Yen Weakens Over Fundamentals – GBP/JPY Technical Analysis
Arslan Butt • 1 min read
On Monday, the Japanese Yen slid following some conflicting economic figures released from Asia’s two biggest economies. These included better news from China’s manufacturing sector which has heightened risk appetite.
The Chinese manufacturing PMI figure mounted to 50.8 vs. 49.9 previously. Caixin Manufacturing PMI has improved investor sentiment regarding global economic growth.
Secondly, the Bank of Japan’s Tankan survey for the Q1 2019 discovered big manufacturers are more uncertain than expected. Japanese sentiment index released at 12, below both the 13 expected and the previous quarter’s 19.
In response, investors have started trading the high yielding risky assets like stock markets.
GBP/JPY is trading at 145.500 adding 0.75% for the day. On the technical front, GBP/JPY has strong resistance at 146.400. Back on March 26, GBP/JPY dropped over 300 pips after testing the double top pattern.
You can also see 200 periods moving average at the same level of 146.400. With that, the market is highly likely to encash the selling opportunity below 146.400 resistance level.
On the lower side support stays at 144.500 and 143.800. While the violation of 146.400 can lead Guppy towards 147.600.