The GBP/JPY lost its shine after weak UK GDP. It hit a low of 194.77 and is currently trading around 194.92. Intraday trend is bearish as long as resistance 194.95 holds.
After climbing 0.2% in March, the UK's real GDP experienced a monthly decline of 0.3% in April 2025. Although construction output increased by 0.9%, the main reason for the decline was a sector drop of 0.4% in services and an increase of only 0.6% in production output. Although there was a monthly contraction, the UK economy grew by 0.7% in the three months leading up to April 2025, with the services sector being the main driver.
The GBP/JPY pair is trading above 34 and 55 and above 200 EMA (Short-term) and 365 EMA (long-term) on the 4-hour chart, confirming a bullish trend. Any violation below 194.75 indicates the intraday trend is weak. A dip to 194.50/193.70/193/192.85/192/191.70/191 /190 is possible. Immediate resistance is at 196.50, a breach above this level targets of 198/200. 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 sell on rallies 195.48-50 with SL around 196.50 for a TP of 192.
