GBP/JPY Rockets as Yen Weakens: Construction PMI Boosts Bullish Sentiment
The GBP/JPY surged more than 100 pips as the yen showed a minor sell-off. It hit a low of 193.26 yesterday and is currently trading around 194.38. Intraday trend is bullish as long as the Support of 192.70 holds.
The UK Construction PMI for May 2025 reached 47.9, exceeding expectations at its highest point in 2025, yet still indicating contraction below the 50.0 threshold; output and new orders decreased at a slower rate, while employment declined sharply, and housing remained the weakest sector. Input price inflation continued, primarily driven by rising wages, but business confidence improved with higher output growth expectations, fueled by anticipated sales improvements and potential interest rate cuts later in the year
The GBP/JPY pair is trading above 55 and 200 EMA (Short-term) and above 365 EMA (long-term on the 1-hour chart, confirming a bullish trend. Any violation below 194 indicates the intraday trend is weak. A dip to 193.70/193/192.85/192/191.70/191 /190 is possible. Immediate resistance is at 194.60, a breach above this level targets of 195/196.50. Any major uptrend is possible only above 196.50.
Market Indicators (4- hour)
CCI (50)- Bullish
Directional movement index - Neutral
Trading Strategy: Buy on dips
It Is good to buy on dips around 194 with SL around 193.70 for a TP of 196.50.
