GBP/JPY was one of the best performers this week on weak yen. It hit a high of 193.76 at the time of writing and is currently trading around 193.38. Intraday trend is bullish as long as support 190 holds.
The British manufacturing sector further declined in April 2025, with the last PMI reading at 45.4, although a slight revision from the initial reading. It is the sixth consecutive month under the 50-mark level, indicating sustained adversity like sharp drops in new export orders, production decline due to weak demand, and accelerating input cost inflation. Consequently, the shedding of jobs continued, business confidence dipped to a 29-month low, and the sector is faced with extra headwinds in the form of geopolitical tensions and trade uncertainty, indicating sustained short-term contraction despite longer-term hopes of potential recovery.
The GBP/JPY pair is trading above 34 and 55 EMA (Short-term) and 200 EMA (long-term on the 4-hour chart, confirming a bullish trend. Immediate resistance is at 193.75, a breach above this level targets of 194/195. Downside support is at 193/192/191.65/191/190.40/190.
Market Indicators
CCI (50)- Bullish
Directional movement index - Bullish
Trading Strategy: Buy on dips
It Is good to buy on dips around 191.67 with SL around 190.40 for a TP of 195.
