- The British Pound recovers in the markets after the improvement of the services PMI.
- Markets ignore the fall in the British manufacturing PMI.
- On Friday the Tokyo CPI will be published and the BoJ will announce interest rates.
The GBP/JPY pair extended its gains on Tuesday, rising towards 192.80 following the improvement in the UK services Purchasing Managers' Index (PMI) earlier in the session. The UK services PMI hit an eleven-month high of 54.9 for April, reversing the forecast decline to 53.0 from 53.1 the previous month. The British Pound (GBP) is gaining ground across the board as investors shrug off a glitch in the Manufacturing PMI, which fell to 48.7 versus the stable print forecast of 50.3. Services represent more than 80% of the British economy, compared to 9.3% of manufacturing production.
The Tokyo Consumer Price Index (CPI) will be published early on Friday, which is expected to remain stable at 2.6%. The Bank of Japan's latest decision on interest rates will follow. The BoJ's latest outlook report for the first quarter is also expected around 03:00 GMT on Friday. Yen traders will be watching BoJ Governor Kazuo Ueda's press conference on Friday morning.
GBP/JPY Technical Outlook
The GBP/JPY pair is approaching a known technical resistance zone between 193.00 and 192.80. The Guppy has been plagued by sideways turmoil in the near term as the pair cycles familiar levels in a wide range just above the 190.00 main handle.
Daily candlesticks remain stuck in the April range, with GBP/JPY limping just below the nine-year highs set in March near 194.00. Despite congestion patterns, the pair remains firmly bullish, trading north of the 200-day exponential moving average (EMA) at 184.90.
GBP/JPY hourly chart
GBP/JPY daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
