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Feb 14, 2018 11:47 AM
Short Term Trend: Bearish, Downtrend
Long Term Trend: Bullish, Up-Trend
The British pound has fallen against the Japanese yen during the trading session on Tuesday, after the UK inflation came out at 3% y/y, above 2.9% that was expected. Core CPI also exceeded early forecasts by rising 2.7% y/y. The Bank of England had just expected high levels of price rises a week ago, accordingly limiting the effect of the inflation data.
Sterling vs. the Yen
The British pound broke down against the Japanese yen amid the session on Tuesday, cutting through the 150 handle. That obviously is a mentally important level, and afterward broke down below that level to reach towards the 149 handle, the base of the support zone. If we break down beneath the 149 handle, we think that GBPJPY will go lower. We have bounced from the 149 handle however, moved over before we got to the 150 handle amid the day. It is a result of this that we have some concerns about the practicality of support. If a break above the 151 exists, at that point we will see that we are going higher.
The drop from 156.59 extends today and intraday inclination stays on the downside for 146.96 supports. Considering bearish disparity condition in daily MACD, firm break of 146.96 will be another indication of medium term trend inversion. On the upside, break of 154.03 resistances is expected to affirm fulfillment of the fall. Otherwise, viewpoint will remain circumspectly bearish even in case of recovery.
The Bottom Line
Sterling-Yen is endeavoring to skip from here, yet in all honesty we imagine that there is potential for an exceptionally negative move if things don't change soon.
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AnalysisWatch Key Resistance level: