- – The British Pound maintained its bullish bias and traded above 145.00 against the Japanese Yen.
- – There is a monster rising channel with support at 144.90 formed on the hourly chart of GBP/JPY.
- – Today in the UK, the PMI service for April 2017 released by both the Chartered Institute of Purchasing & Supply and the Markit Economics posted a rise from 55 to 55.8.
UK Services PMI
Today in UK, the PMI service for April 2017 was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The market was positioned for the PMI to decrease from the last reading of 55 to 54.5.
However, the result was above the market forecast, as the PMI service posted an increase to 55.8. The best part was the sharpest rise in business activity since December 2016, and the work and employment levels also expanded at a great pace. Commenting on the data, the Director of Customer Relationships at the Chartered Institute of Procurement & Supply, Duncan Brock, stated “The UK’s biggest sector started Q2 in stellar fashion with the strongest performance so far this year and with new business growth riding high”.
Overall, the result was positive, and likely to help GBP/USD in gaining pace above the 145.40 level in the near term.
GBP/JPY Technical Analysis
The British Pound gained a lot of pace recently and moved above the 144.40 and 145.00 resistance levels against the Japanese Yen. The best part was GBP/JPY moving above the 145.00 level, suggesting a solid bullish bias.
There is a monster rising channel with support at 144.90 formed on the hourly chart of GBP/JPY, which is acting as an upside move catalyst and preventing losses. The pair recently dipped towards the 23.6% Fib retracement level of the last wave from the 143.15 low to 145.40 high where it found support.
The pair is currently well above the channel support and the 100 hourly simple moving average, and looking to break the channel resistance at 145.40 for further gains in the near term. The pair is likely to break 145.40 for a move towards the 146.00 level in the near term.Tags: British Pound, GBP/JPY Technical Analysis, Japanese Yen, UK Services PMI