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GBP/JPY cheers uptick in UK PMI, rises above 173.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 3, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The GBP/JPY extended gains to trade above 173.00 after the data in the UK showed service sector expansion gathered pace in January.

    Eyes Fibo resistance

    The pair’s rebound from 5-DMA support at 171.96 followed by a break above 173.00 handle on the back of an upbeat UK services PMI figure has opened doors for 173.46 (38.2% of 188.81-163.98). Sterling was already on the rise ahead of the data and the rise in services PMI to 55.6 (as opposed to the expected fall to 55.3 from Dec’s 55.5) only added to the bid tone around the currency.

    Meanwhile, moderate losses in the equities have not resulted in JPY demand so far. Consequently, the cross clocked a high of 173.21 before trimming gains slightly to trade around 173.10 levels.

    GBP/JPY Technical Levels

    The immediate resistance is seen at 173.46 (38.2% of 188.81-163.98), above which the prices could test a major hurdle at 175.02 (Feb 1 high). On the other hand, a break below 171.96 (5-DMA) would expose 170.77 (10-DMA).
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