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British Pound Picks up a Bid against the Japanese Yen


The British pound continues to pick up some bids against the safe haven Japanese yen. The benchmark GBP/JPY currency exchange rate is trading quietly around 157 yen ahead of Thursday’s Bank of Japan and European Central Bank monetary policy and rate decisions.

The GBP/JPY Forex market has been ranged bound for the last couple of trade sessions absent key economic data and after pulling back from a weekly high price point.

Today, the United Kingdom has no economic data scheduled for release. Germany will feature the monthly Gfk consumer climate index during their trade session.

The United States is publishing core and headline durable goods orders for the month as well as monthly retail inventory data. The Energy Information Agency (EIA) will publish weekly U.S. crude oil inventory numbers and the industry group, Cushing, will publish weekly their active U.S. oil rig count. 

Daily British Pound Technical Report (GBP/JPY)

Looking at the above four hour MT 4 price chart, the relative strength index (RSI) looks positive and the British pound looks strong above the two hundred (200) hour simple moving average. This could bring more gains to the GBP/JPY currency exchange rate.

On the upside, the British pound notes technical resistance at the weekly high price point of 157.70 yen. The next upside barrier lines up at the double tops around 158.20 yen.

A daily close above 158.20 yen opens the door for the psychological level at 160 yen. The June 2016 high price point then comes into focus at 160.20 yen.

On the downside, the GBP/JPY currency exchange rate has immediate support lining up at 156.85 yen. The next layer of support lines up at the 200 hour simple moving average around 155.12/13.

A sustained close below the 200 hour simple moving average opens the door for the 12 October swing low price point in focus at 153.70 yen.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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