Visit our website – Ikofx
The British pound fell against the Japanese yen recently, but it found buyers around a critical support area where buyers defended losses in the GBPJPY pair. Today, there were a couple of economic releases in Japan, which ignited moves in the yen pairs. The unemployment rate was released the Ministry of Health, Labour and welfare and published by the Japan Statistics Bureau. The market was not expecting any rise in the unemployment rate, but the outcome was lower as the Japanese unemployment rate climbed to 3.6% in January 2015, compared to the preceding month. This helped the GBPJPY pair to some extent and caused an upside reaction in the short term.
There was a support trend line formed on the hourly chart of the GBPJPY pair, which helped the pair and protected the downside in the near term. Currently, the pair is correcting lower and moving towards the 38.2% fib retracement level of the last drop from the 185.01 high to 183.57 low. However, there is a major point to note that the pair is now trading above the 100 hour MA, which is a bullish sign. If the pair gains momentum, then the next level of interest would be around the 50% fib level where the British pound sellers might try to protect the upside in the short term. Any further gains might be limited considering the importance of 184.40 resistance area.
On the downside, the 100 hour MA might act as a support, followed by the highlighted trend line where buyers might appear again
Overall, one might consider buying dips around the 100 MA as long as it is trading above the stated trend line.
————————————-
Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
Free Reports:
