GBP/JPY Recovers to 156.00 on Upbeat UK Manufacturing Data
After witnessing a volatile session on Tuesday, the GBP/JPY cross turned lower on Wednesday before recovering sharply to 156.00 level on upbeat UK manufacturing data.
Earlier during the day, the cross dropped close to 155.10 as 'Brexit' worries kept bull's on the back-foot. The pair, however, recovered swiftly after UK manufacturing and industrial production posted a surprisingly strong growth in April
According to the data released just a while ago, UK manufacturing production that makes up around 80% of total industrial production recorded a 2.3% m-o-m growth in May, while industrial production in May registered a growth of 2.0%.
Meanwhile, upbeat Q1 Japanese GDP growth further boosted the bullish sentiment surrounding the Japanese Yen and might limit further recovery for the GBP/JPY cross. Moreover, rising uncertainty over 'Brexit' continues to fuel volatility across GBP pairs, making it difficult for traders to decide near-term directional move.
Technical levels to watch
Bounce off 155.00 handle, and a follow-up strength above 156.00 mark (156.35-40 resistance), is likely to assist the pair to extend its near-term recovery trend towards its next major resistance near 157.85-90 zone.
Conversely, reversal from immediate resistance level and a subsequent weakness below 155.00 level is likely to drag the pair back towards recent daily closing lows support near 154.40. Sustained weakness below 154.40 support, leading to a break below 154.00 round figure mark, is likely to turn the pair vulnerable to break through weekly lows support near 153.00 handle and head towards testing April lows support near 151.65 region.