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GBP/JPY dips to fresh 9-month lows post-UK PMI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The cross in the GBP/JPY remained at multi-month lows below 175 handle following the release of the construction PMI report from the UK, which improved notably in Dec.

    GBP/JPY capped below 175 handle on UK data

    Currently, the GBP/JPY pair trades -0.51% lower near fresh nine-month lows struck at 174.87 immediately after the data release. The GBP/JPY cross remains relentlessly offered this session mainly on the back of persisting strength in the Japanese currency against the US dollar amid widespread risk-aversion.

    Adding to the further downside in the pair, the cable also keeps losses and failed to take advantage of the better than expected construction sector report from the UK. The UK construction PMI rebounded from 55.3 in Nov to 57.8 Dec.

    Markets now digest the UK macro news while the sentiment on the global indices is expected to play a crucial role in the day ahead.

    GBP/JPY Technical Levels

    To the upside, the next resistance lies at 175.48 (1h 5-SMA), above which it could extend gains to 176.17 (daily high). To the downside, the cross finds immediate support at 174.65 daily S1), below that 174 (psychological levels), could act as a major support.
    For more information, read our latest forex news.

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