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There British pound traded lower recently against the Japanese yen, but later managed to gain bids and currently making an attempt to correct higher. It is mainly due to the Japanese yen losing the ground. There were some releases lined up today during the Asian session in Japan. The most important one was the National Consumer Price Index representing the measure of price movements obtained by comparison of the retail prices of a representative shopping basket of goods and services. It was released by the Statistics Bureau, which posted a rise of 2.2% in February 2015, compared with February 2014. This was not encouraging, as it was lower if we compare to the last increase of 2.4%.
There was a monster bearish trend line formed on the hourly chart of the GBPJPY pair, which was taken out by buyers earlier today after the Japanese CPI release. However, after the break the pair was seen struggling around the 38.2% fib retracement level of the last leg from the 178.37 high to 176.47 low. The pair is again moving lower, and there is a chance that it might find support around the broken trend line. There is a lot of bearish pressure no doubt, as the hourly RSI is also below the 50 level suggesting buyers are struggling to hold the ground. A break below the recent low of 176.50 might call for a move towards 176.00-10 levels.
On the upside, a break of the 38.2% fib level could easily take the pair towards the 177.60-7 levels.
Overall, one might consider buying dips in the GBPJPY pair as long as it stays above the last low of 176.47.