GBP/JPY has been in a downward corrective structure since January 2017 and is still above the support area of 136.40-138.50. With mixed price action and mixed fundamentals, both currencies in the pair have never been with full pressure, though JPY is somehow managing to gain ground against GBP with a steady corrective climb. Today, Japan released the revised industrial production report which was expected to be at -0.8% but came in at -0.4% which positively affected the pair today. On the other hand, GBP had an average earning index report. The index was expected to be at 2.4% but was posted at 2.2% having a negative effect on the pair. However, a claimant count change report was positive with -11.3k which was expected to be at 3.2k. Currently due to mixed influence of the fundamental reports the situation on the chart i.e. corrective structure is likely to remain the same for few more days.
Now let us look at the pair from the technical viewpoint. The price is in a downward corrective move, heading towards the support area of 136.40-138.50. Until the lowest support at 136.40 is taken out, we cannot expect an impulsive selling pressure in this pair. On the other hand, if the price bounces off from the support area, the price will still be in the corrective structure until the price breaks above 145. Until the price breaks above 145, we will stick to the bearish scenario.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
GBP/JPY has been in a downward corrective structure since January 2017 and is still above the support area of 136.40-138.50. With mixed price action and mixed fundamentals, both currencies in the pair have never been with full pressure, though JPY is somehow managing to gain ground against GBP with a steady corrective climb. Today, Japan released the revised industrial production report which was expected to be at -0.8% but came in at -0.4% which positively affected the pair today. On the other hand, GBP had an average earning index report. The index was expected to be at 2.4% but was posted at 2.2% having a negative effect on the pair. However, a claimant count change report was positive with -11.3k which was expected to be at 3.2k. Currently due to mixed influence of the fundamental reports the situation on the chart i.e. corrective structure is likely to remain the same for few more days.
Now let us look at the pair from the technical viewpoint. The price is in a downward corrective move, heading towards the support area of 136.40-138.50. Until the lowest support at 136.40 is taken out, we cannot expect an impulsive selling pressure in this pair. On the other hand, if the price bounces off from the support area, the price will still be in the corrective structure until the price breaks above 145. Until the price breaks above 145, we will stick to the bearish scenario.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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