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Sterling Down Against Yen, Technical Readings Shows an Overbought


Forex7

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At today’s trading (17/12, 08.44 GMT) the Pound sterling falls against Japanese Yen. The GBP/JPY opened at 136.06 in early trading (00:00 GMT), and plunged -26 pips or about -0.19 % at 135.8.

 

The unfavorable expectation against Pound sterling is seems to be rising , before Office for National Statistics reports a latest data of the change in the price of goods and services purchased by consumers, in November. The CPI y/y might decrease to 2.6% from previous period of 2.7%.

 

Vibiz Consulting Analyst said The Pound also experiencing a technical pressure, as the currency pair was opened gap-up,breaking through overbought level. Normal range of Pound sterling is estimated to have the support level at 134.80 and resistance level at 136.86.

 

Technical readings still not shows a probability a high magnitude of bearish movement, and might lead a movement within a limited range of trading. The Yen might receive a pressure to weaken after Shinzo Abe’s Liberal Democratic Party won Japanese elections yesterday, giving him a mandate to act on pledges of expanded monetary stimulus.

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