The bid tone around GBP gathered pace, pushing the GBP/JPY into the positive territory even though the data showed the UK factory activity contracted more than expected in December. Trades above hourly 50-MA The cross now trades above the hourly 50-MA located at 166.39. A weaker industrial and manufacturing data release in the UK did result in a quick fire drop to near 166.00 levels, but the same was quickly undone as the slowdown was already priced-in after the release of a weak PMI index for December. Consequently, the bid tone around GBP remained intact. The pair now trades around 166.70 levels. GBP/JPY Technical Levels The immediate resistance is seen at 167.14 (resistance on hourly chart), above which the spot could target 168.22 (hourly 100-MA). On the other hand, a break below confluence of support around 166.38 (hourly 50-MA) would open doors for a drop to 164.55 (previous day’s low). For more information, read our latest forex news.