Friday’s trade saw GBP/JPY within the range of 177.87-180.12. The pair closed at 179.47, gaining 0.71% on a daily basis. On Wednesday (March 18th) the cross registered a daily low of 177.09, which has been the lowest level since February 3rd. GBP/JPY appreciated 0.26% for the whole week, which followed two consecutive weeks of losses. On Monday (March 23rd) the pair may be influenced by a number of fundamentals, as listed below.
Fundamentals
United Kingdom
CBI Industrial Trends Survey
The gauge of industrial orders in the United Kingdom probably slipped to a reading of 9 during the three months to March, according to expectations, from 10 in the three-month period to February. The latter has been the highest reading since the period to August 2014, when a value of 11 was reported. This indicator reflects the net balance between companies, that registered an increase in industrial orders during the respective period of three months and those, that registered a drop. It is the oldest indicator, released from the UK private sector, to show the development tendency in the country’s industry. The Industrial Trends Survey by the Confederation of British Industry (CBI) provides expert qualitative opinion from senior manufacturing executives, on past and expected trends in output, exports, prices, costs, investment intentions, business confidence and capacity utilization. A level above zero suggests that volume of orders is projected to increase, while a level below zero indicates that expectations point to lower volumes. If the survey showed predominant optimism, this would have a limited bullish effect on the sterling. The CBI will announce the results from its survey, encompassing 17 industries, at 11:00 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 179.15. In case GBP/JPY manages to breach the first resistance level at 180.44, it will probably continue up to test 181.40. In case the second key resistance is broken, the pair will probably attempt to advance to 182.69.
If GBP/JPY manages to breach the first key support at 178.19, it will probably continue to slide and test 176.90. With this second key support broken, the movement to the downside will probably continue to 175.94.
The mid-Pivot levels for Monday are as follows: M1 – 176.42, M2 – 177.55, M3 – 178.67, M4 – 179.80, M5 – 180.92, M6 – 182.05.
In weekly terms, the central pivot point is at 179.29. The three key resistance levels are as follows: R1 – 181.49, R2 – 183.51, R3 – 185.71. The three key support levels are: S1 – 177.27, S2 – 175.07, S3 – 173.05.
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