The GBP/JPY pared most of its gains on weak Pound sterling. It hits 189.92 at the time of writing and is currently trading around 190.07. Intraday trend is bearish as long as resistance 196 holds.
UK Construction Struggles Despite Slight Improvement
In March 2025, the S&P Global/CIPS UK Construction PMI increased from 44.6 in February to 46.4, showing a less severe construction contraction, but still below the level for growth at 50.0. Residential building, civil engineering, and commercial construction were all marginally improving, but the sector is still plagued by high input costs and economic uncertainty, leading to redundancies. Although the PMI reading just edged ahead of the forecasted rate of 46.3 and indicated a modest stabilization, overall sentiment remains cautious due to ongoing economic pressures as well as client risk aversion.
Technicals Favor Further Downside
The GBP/JPY pair is trading below 34 and 55 EMA (Short-term) and 200 EMA (long term on the 4-hour chart, confirms a bearish trend. Immediate resistance is at 190.30 ,a breach above this level targets of 190.57/191/191.75/192.30/193. Downside support is at 189.80 with additional levels a188.75/188/187.25/186/185.
Market Indicators0.
CCI (50)- Bearish
Directional movement index - bearish
Trading Strategy: Sell on Rallies
It Is good to sell on rallies around 19with SL around 196 for a TP of 190.
