GBP/JPY Finds Support At 5 Week EMA Again
January 20, 2013 in Chart Alert
GBP/JPY went as high as 144.81 but found resistance below the psychological level of 145.00 and fell sharply to 140.51. The currency pair found a strong support at 140.51 which was not only the psychological support of 140.00 level but more interestingly it indicated the continuation of the recent trend.
Since mid-November GBP/JPY has been continuously finding support at 5-week EMA level and the recent drop was no exception.
The recent economic releases from U.K. were mixed but the economic data from Japan continues to be weak with machine tool orders, machinery orders and industrial production falling unexpectedly. The year-on-year change in industrial production during December was -5.5% according to the data released last week. The machine tool orders fell by -27.5% as compared to December 2011.
The weak economic data keeps the pressure on Japanese yen which has recently fallen very strongly against all major currency pairs.