GBPJPY has been quite impressive with the recent bullish gains which lead the price towards 149.00-150.00 area from where the price is being observed currently to push lower with certain bearish momentum. Despite GBP having mixed economic results recently, the sustainability indicates the amount of strength it had over JPY in the process.
Recently the UK Services PMI report was published with a decrease to 52.2 from the previous figure of 53.9 which was expected to be at 53.4, Halifax HPI increased to 0.7% from the previous value of -1.3% which was expected to be at 0.5% and RICS House Price Balance decreased to -10% which was expected to be unchanged at -2%. Today GDP report was published unchanged at 0.0% which was expected to increase to 0.1%, Manufacturing Production increased to 0.2% from the previous value of -0.2% which was expected to be at 0.1%, Prelim GDP also increased as expected to 0.6% from the previous value of 0.4% and Prelim Business Investment decreased to -1.2% from the previous value of -0.7% though it was expected to increase to 0.2%.
On the other hand, today JPY gained quite well today against GBP despite the recent worse outcome of the economic reports. Recently Japan's Bank Lending report was published with a decrease to 2.2% from the previous value of 2.3% which was expected to increase to 2.4%, Core Machinery Orders decreased significantly to -18.3% from the previous value of 6.8% which was expected to be at -9.5% and Current Account report decreased to 1.33T from the previous figure of 1.43T which was expected to increase to 1.36T. Today M2 Money Stock report was also published with decrease to 2.7% which was expected to be unchanged at 2.8%.
As of the current scenario, GBP having worse economic results today lead to certain bearish pressure in the pair whereas JPY having sentimental advantage despite the worse economic reports is expected to extend its gains for a certain period before GBP regains its momentum to push the price higher in the future.
Now let us look at the technical view. The price is currently quite impulsive with the bearish gains as it rejected off the 149.00-150.00 resistance area with a daily close. The price is expected to push towards 147.00 area before pushing up higher towards 150.00 area in the future. As the price remains above 145.00 area with a daily close, the bullish bias is expected to continue.
SUPPORT: 145.00, 147.00
RESISTANCE: 149.00, 150.00
BIAS: BULLISH
MOMENTUM: VOLATILE
