Forex Market: GBP/JPY daily forecast

During yesterday’s trading session GBP/JPY traded within the range of 172.38-173.42 and closed at 173.33.

At 8:02 GMT today GBP/JPY was gaining 0.15% for the day to trade at 173.59. The pair touched a daily high at 173.68 at 2:55 GMT.

Fundamental view

United Kingdom

Activity in United Kingdom’s sector of manufacturing probably slowed down in June, with the corresponding PMI coming in at a reading of 56.6, according to the median forecast of experts, down from 57.0 in May. The index is based on a survey, encompassing managers of companies, that operate in sectors such as manufacturing, mining, utilities. They are asked about their estimate in regard to current business conditions in the sector in terms of new orders, output, employment, demand in the future. Values above the key level of 50.0 signify that activity in the sector has expanded. Higher than projected PMI readings would certainly heighten the appeal of the sterling. The Chartered Institute of Purchasing and Supply (CIPS) is expected to announce the official reading at 8:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/JPY manages to breach the first resistance level at 173.71, it will probably continue up to test 174.08. In case the second key resistance is broken, the pair will probably attempt to advance to 174.75.

If GBP/JPY manages to breach the first key support at 172.67, it will probably continue to slide and test 172.00. With this second key support broken, the movement to the downside will probably continue to 171.63.