GBP/JPY little changed after solid Japanese data, BoJ decision

The GBP/JPY is trading under very slight pressure after the well expected unanimous BoJ decision to keep its monetary policy monetary policy unchanged and the solid Japanese data.

The GBP/JPY is hovering around 157.58 area the last couple of hours but since the solid Japanese data released it seems to gain an uptrend momentum, even a soft one. Briefly, the Japanese construction orders, as well as the Annualized Housing Starts were released at much better levels than forecasted, giving credit to the “Abenomics”. On the other side, the cross decline from opening as of 158.00 area to the 157.60 zone, can be partly attributed to the soft Nikkei decline, but mostly to the heaviness of the cable.

Technical Aspects on the GBP/JPY

The cross is under heavy pressure but can be mostly attributed to the heaviness in the GBP/USD coupled with Nikkei decline, lingering Chinese liquidity fears and other factors. Markets participants interested in the cross should realize that as long as the pair is well above the 50-daily EMA at 156.46 and the 21-daily EMA (157.49), if it manages to overcome the handle as of 157.87 where the 10-daily MA lies as well the 158.20 (the 24th October daily high), then the road to the 2009 highs as of 163 it can be maybe achievable. Briefly, traders in favor of the bullish above depicted scenario, point out that between 158.20 area and the 2009 high as of 163.00, there are no resistances to be found, apart from tiny ones. On the other side, if the 50-daily EMA at 156.46 is breached, then the cross might kick off a downtrend shift.


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