GBP/JPY Price forecast: rebounds at 189.00 while the feeling of appetite for the risk compensates the weakest British PMIS

• The GBP/JPY attracts some intra -sellers after touching a maximum of more than two weeks on Wednesday.
• The hopes of a commercial agreement between the US and Japan and the bets for an increase in Boj rates support the JPY, exerting pressure.
• The disappointing PMIs of the United Kingdom weigh on the GBP and contribute to the intradication of the torque.

The GBP/JPY crossing goes from the neighborhood of the 190.00 psychological brand, or a maximum of more than two weeks achieved above this Wednesday. Intradía sale gains impulse in reaction to the disappointing PMIs of the United Kingdom and drags cash prices to a new daily minimum, around the region of 188.25 during the first half of the European session.

The manufacturing PMI of the United Kingdom of Global/CIPS was reduced to 44 in April from 44.9 in the previous month, while the business activity index of the preliminary United Kingdom was unexpectedly contracted at 48.9. This, together with a modest rebound of the US dollar (USD), continues to weigh on the sterling pound (GBP). The Japanese Yen (JPY), on the other hand, continues with its higher relative performance amid the hopes of a commercial agreement between the US and Japan, which further contributes to the intra -dialing of the GBP/JPY pair.

Apart from this, the expectations that the Bank of Japan (BOJ) will continue to increase interest rates and bets that the Bank of England (BOE) will reduce indebtedness costs suggest that the road of lower resistance for cash prices is down. However, the optimism about the possible de -escalation of commercial tensions between the US and China continues to support the optimistic mood of the market and could limit JPY’s profits. This, in turn, could offer some support to the GBP/JPY crossing and help limit new losses.

Looking at the widest panorama, cash prices remain confined in a family range maintained during the last week. This could still be categorized as a troker consolidation phase, justifying some caution before opening aggressive directional positions. Meanwhile, oscillators in the daily chart remain in negative territory. In addition, recent repeated failures to overcome the 190.00 mark validate the short -term negative perspective for the GBP/JPY crossing and favor bassists.

However, any subsequent sliding below the brand of 188.00 could continue to find some support near the horizontal zone of 187.50-187.45. A convincing rupture below will reaffirm the negative bias and make the GBP/JPY crossroads vulnerable to weakening even more below the round figure of 187.00, towards the proof of the following relevant support near the region of 186.60-186.55. Cash prices could eventually fall to the 186.00 mark, which if it breaks should pave the path for deeper losses in the short term.

On the contrary, any positive return movement above the brand of 189.00 could face some resistance near the region of 189.45-189.50, above which the GBP/JPY crossing could make a new attempt to conquer the round figure of 190.00. A sustained strength beyond the latter could change the bias in favor of the upward operators and trigger a recovery of short coverage towards the obstacle of the simple mobile average (SMA) of 50 days, currently located just above the 191.00 mark.

GBP/JPY DAILY GRAPH