GBPJPY Forex Technical Analysis – Aug 30, 2017

GBPJPY recently broke below the bottom of its ascending triangle visible on the daily time frame, signaling that a long-term selloff is in order. Price appears to be pulling up for a correction to the broken support around the 144.00 levels.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level is closest to the broken support, which might hold as resistance moving forward. The 100 SMA is close to the 50% Fib while the 200 SMA is in line with the 38.2% Fib, which could also be enough to keep gains in check.
The short-term moving average is still above the longer-term 200 SMA, though, so the path of least resistance is still to the upside. However, the gap has narrowed to signal that a downward crossover might happen soon. Stochastic is still puling up from the oversold region to indicate a pickup in buying pressure.
UK economic data was slightly weaker than expected as Nationwide reported that house prices fell 0.1% instead of staying flat. However, what really dragged the pound down was the ongoing Brexit talks as European Commission officials have been inclined to give the UK negotiating team a tough time.
Meanwhile, the yen got a boost from North Korea’s missile launch but gave back its recent gains when the prospect of an all-out nuclear strike faded. Still, an act of provocation from the hermit nation could be enough to boost safe-haven flows again. Japan’s retail sales data is due next and a 1.1% gain is eyed, slower than the earlier 2.2% increase.
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With an upbringing rooted in deep ethical values, Yashu Gola knows how to put honesty and dedication into his articles. This young and dynamic financial analyst has done his graduation in IT engineering. His interests in financial writing have once brought him to our digital doorsteps. Since then, he has been an integral part of and writes the most captivating news-articles on the foreign exchange industry, cryptocurrencies, and medical marijuana trading.