GBP/JPY Breaks Through 155.00 Important Support
The bears seem to regain control over the GBP/JPY
pair as it drops back below 155.00 handle on weaker-than-expected UK
construction PMI print. The pair is now headed towards the two week low
level of 154.42 tested on Tuesday.
Adding to Tuesday's weak
manufacturing PMI numbers, data released on Wednesday showed activity in
UK's construction sector deteriorating in April. The UK construction
PMI fell to 52.0 in April, down from a March's reading of 54.2.
Immediately following the release, the pair gave up 155.00 handle
support and now seems all set to confirm the break-down.
Later
during the day, the US ADP jobs report and ISM non-manufacturing PMI
would now be looked at for further downward momentum for GBP pairs.
Technical levels to watch
A
follow-up selling pressure, dragging the pair back below Tuesday's low,
now seems to accelerate the fall immediately towards 153.55-50
intermediate support area before extending the fall further towards
April daily closing low level support near 152.00 round figure mark.
Meanwhile
on the upside, move back above 155.00 handle seems to confront
immediate resistance near 155.50-60 area, which is closely followed by a
strong resistance near 156.00 round figure mark. Further, only a
decisive strength above 156.00 might negate any bearish bias, opening
room for additional recovery towards 158.00 mark resistance in the
near-term.
