GBP/JPY in the Red: Can Dip-Buying Save the Day?

 GBP/JPY showed a minor sell-off as yen gained gained sharply as US-China trade war eases. It hits an  high of 190.05 yesterday  and is currently trading around 188.50. Intraday trend is bullish  as long as support 186.50 holds.

In April, the Services PMI dropped sharply to 48.9 from 52.5, marking contraction after 17 months of expansion, while the Manufacturing PMI dropped to 44.0, the lowest contraction since August 2023. Consequently, the Composite PMI, which encompasses both sectors, dropped to 48.2, its lowest since November 2022, and signaling a broad-based decline in private sector activity

The GBP/JPY pair is trading above  34 and 55 EMA (Short-term) and below 200 EMA (long term on the 4-hour chart, confirms a mixed trend.  Immediate resistance is at 190.30,a breach above this level targets of 191/191.75/192.30/193. Downside support is at 188 with additional levels a 187.46/187.10/186.45.

Market Indicators

CCI (50)- Bullish

Directional movement index - Bullish

Trading Strategy: Buy on dips

 It Is good to buy on dips around 189 with SL around 188 for a TP of 192.