The GBP/JPY showed a minor pullback despite mixed UK PMI data. It hit an intraday low of 198.12 and is currently trading around 198.74. Intraday trend is neutral as long as the resistance at 199 holds.
Released at 8:30 a.m. GMT on August 21, 2025, the UK flash PMI data shows a great contrast between industries: driven by strong domestic and international demand, the Services PMI surged to 53.6, eclipsing projections of 51.8 and marking the fastest growth in a year; the Manufacturing PMI, however, fell from 48.0 to 47.3, indicating continuous contraction and difficulties in the manufacturing sector.
The pair is trading below the 55 and 200 EMA and above the 365 EMA (long-term) on the 1-hour chart, confirming a mixed trend. Any violation below 197.80 indicates the intraday trend is weak. A dip to 196.70/196.20/195is possible. Immediate resistance is at 199, a breach above this level targets 199.45/200/200.28/202.
Market Indicators ( 1-hour chart)
CCI (50)- Bearish
Directional movement index - Neutral
Trading Strategy: Buy
It is good to buy above 199 with SL around 198 for a TP of 202/202.98
