- GBP/JPY stays below near-term key resistance line, close to the multi-month high.
- Recent Japan data flashed mixed signals.
- 200-day SMA acts as strong downside support.
GBP/JPY seesaws around six-week-old rising trend line resistance while taking rounds to 141.43 during the Asian session on Friday.
Japan’s Tokyo Consumer Price Index (CPI) rose past 0.4% forecast and prior to 0.8% (YoY) while the key Tokyo CPI ex Fresh Food matched +0.6% expected mark versus 0.5% prior. Further, Tokyo CPI ex Food, Energy reprinted the previous +0.7% figure against +0.6% expected whereas the Unemployment Rate stood unchanged at 2.4%. Moreover, Preliminary readings of October month Industrial Production (YoY) marked a slump of -7.4% against +1.9% forecast and 1.3% prior.
The pair surged to the highest since May-end on Thursday but failed to hold on to gains as an upward sloping trend line since October 17, close to 141.70 now, limited the quote’s further advances.
Repeated failures to cross near-term resistance line and overbought conditions of 14-day Relative Strength Index (RSI) indicate brighter chances of the pair’s pullback to 140.00 round-figure, with 141.00 acting as immediate support.
Though, pair’s further declines could be restricted by a 200-day Simple Moving Average (SMA) level of 138.40.
Alternatively, the pair’s upside break of 141.70 accelerates the run-up towards 143.72/78 area including March/April lows.
GBP/JPY daily chart
Trend: Pullback expected
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