GBP/JPY Continues to Flirt with 155.00 Handle Ahead of UK PMI
GBP/JPY Continues to Flirt with 155.00 Handle Ahead of UK PMI
The GBP/JPY
pair continues to hover around 155.00 important level just ahead of UK
services PMI, awaiting for a break-out in order to confirm its near-term
direction.
In last two trading sessions, the pair has been
oscillating within 150-pips trading range between 156.00-154.40. Even
disappointing UK PMI numbers on Tuesday and Wednesday failed to move the
pair beyond this trading range.
On daily chart, the pair seems
to be in the process of forming a bullish reversal pattern, inverted
head & shoulders, with 155.00 psychological mark as shoulder
support. The pair, however, hasn't been able to register any meaningful
up-move from this important support and hence, it would be prudent to
wait for a decisive break from the current trading range before
confirming the pair's near-term direction.
Technical levels to watch
Weakness
back below 155.00 handle and a subsequent break through the lower end
of the trading range support 154.50-40 area, now seems to drag the pair
immediately towards 153.55-50 support area. The fall could further get
extended towards April daily closing lows support near 152.00 round
figure mark. Furthermore, decisive break through 155.00 handle would
also negate the bullish reversal pattern, turning the pair vulnerable to
further downside.
Alternatively, bounce off 155.00 support is
likely to get extended towards upper end of the trading range resistance
near 156.00 mark, which if conquered should open room for a further
up-move towards 158.00 round figure mark. Strength beyond 158.00 mark
could face stiff resistance at 50-day SMA, currently near 158.70 level.
