GBPJPY Finding Support Near 22 Day EMA

January 29, 2013 in Chart Alert

GBP/JPY finding support near 22 day EMADuring last week GBP/JPY had broken the support pattern which has been in place for past 9 weeks. For past 9 weeks the currency pair had been continuously finding the support near 5-week EMA. The downward move, however, could not sustain and an immediate recovery to 142.24 had taken place. The point to be noted was that this high was again lower than the previous two peaks as was mentioned in this GBP/JPY post.

Current price action

GBP/JPY is currently finding support near 22-day EMA and a decisive break of this support may be critical for a retest of the recent 139.26 which is not only the recent support but also is now near the 55-day EMA support.

GBP/JPY and 38.2% retracement

The strong upward jump which had taken place during November 13, GBP/JPY retracement2012 and January 13, 2013 has it’s 38.2% retracement near 137.65.

Today’s Economic data

No important economic releases are scheduled from the U.K. today. The retail sales data for December 2012 from Japan is to be released at GMT 23:50. The year on year change of retail sales during November was 1.3%. The market consensus is that the December data will show 0.3% change in the retail sales as compared to the previous year’s December retail sales. The November data for large retailers’ sales had shown a rise of 0.9% as compared to November 2011 data. Any unexpected change in retail sales data may cause some volatile moves today but overall short-term trend seems to be for more downward consolidation for GBP/JPY.

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