Forex Market: GBP/JPY daily trading forecast

Yesterday’s trade saw GBP/JPY within the range of 173.02-173.96. The pair closed at 173.31, losing 0.03% on a daily basis.

At 8:07 GMT today GBP/JPY was down 0.04% for the day to trade at 173.01. The pair broke the first key daily support and touched a daily low at 172.72 at 5:05 GMT.

Fundamental view

United Kingdom

Activity in United Kingdom’s sector of services probably was little changed in August, with the corresponding PMI coming in at 58.5, down from 59.1 in July. The index is based on a survey, encompassing managers of companies, that operate in sectors such as transportation, communications, IT, financial intermediation, tourism. They are asked about their estimate regarding current business conditions (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 readings would certainly heighten the appeal of the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 8:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 173.43. In case GBP/JPY manages to breach the first resistance level at 173.84, it will probably continue up to test 174.37. In case the second key resistance is broken, the pair will probably attempt to advance to 174.78.

If GBP/JPY manages to breach the first key support at 172.90, it will probably continue to slide and test 172.49. With this second key support broken, the movement to the downside will probably continue to 171.96.

The mid-Pivot levels for today are as follows: M1 – 172.23, M2 – 172.70, M3 – 173.17, M4 – 173.64, M5 – 174.11, M6 – 174.58.

In weekly terms, the central pivot point is at 172.46. The three key resistance levels are as follows: R1 – 173.31, R2 – 173.87, R3 – 174.72. The three key support levels are: S1 – 171.90, S2 – 171.05, S3 – 170.49.