GBP/JPY has been quite impressive with the recent bullish gains which lead the price to reside above 145.00 area after being impulsively bearish with a break. GBP has been struggling for gains against JPY whereas recent JPY economic reports helped GBP to gain certain momentum for a while.
Today, Japan's Prelim Industrial Production report was published with a decrease to 0.3% from the previous value of 1.4% which was expected to increase to 1.5% and Housing Starts report showed a significant increase to 0.3% from the previous negative value of -8.3% which was expected to increase in deficit to -8.8%. Moreover, recently BOJ Governor did not give any clues about an immediate positive economic impact on the domestic economy from the stimulus programs in his recent speech.
On the other hand, today the UK Net Lending to Individuals report was published with an increase to 5.7B from the previous figure of 4.4B which was expected to be at 5.2B, M4 Money Supply report was published with an increase to 0.2% from the previous negative value of -1.4% which was expected to be at -1.1%, and Mortgage Approvals report was published with a slight decrease to 62k which was expected to be unchanged at 63k.
As for the current scenario, GBP has been quite positive with the economic reports today which is expected to lead to further gains against JPY in the short run. Though JPY has been quite mixed amid the recent economic reports, current sentiment on GBP is quite optimistic which resulted in certain impulsive bullish pressure in the pair.
Now let us look at the technical view. The price is currently residing above 145.00 area with an impulsive bullish pressure in the intraday charts. After the break below 145, certain bullish impulsive pressure leading the price to reside above 145 again has qualified the previous breakout below as False and as of the False Breakout Structure the price is expected to push against it, resulting to further bullish pressure with target towards 148.50 area in the future. As the price remains above 143.00 area, the bullish bias is expected to continue.
