GBP/JPY Holds 155.00 Support Ahead of UK PMI
The GBP/JPY
pair eased from its Asian session peak of 156.15 but has been able to
hold its neck just above 155.00 handle ahead of the UK construction PMI
release, due for release in a short while from now.
On Tuesday
too, the pair reversed from above 156.00 level and dropped below 155.00
handle to 154.42 after the UK manufacturing PMI dropped to its lowest
level since Feb. 2013. The 155.00 psychological mad has been an
important historic support level. Moreover, on daily chart the pair
seems to be forming a bullish reversal inverted head & shoulders
pattern with 155.00 level as shoulder support. Hence, 155.00 level
become important pivot point in determining the pair's near-term
direction.
A disappointing PMI number, which could now force the
pair to decisively break below this important support, would negate the
formation and increase its vulnerability to continue drifting lower in
the near-term.
Technical levels to watch
A
sustained break below 155.00 handle and a subsequent break through
Tuesday's low support near 154.50-40 area, should drag the pair
immediately towards 153.55-50 support area. The fall could further get
extended towards April daily closing lows support near 152.00 round
figure mark.
Alternatively, should the pair manage to hold and
bounce off 155.00 strong support and extend its bounce beyond 156.00
mark, a further up-move towards 158.00 round figure mark could be on the
cards. Strength beyond 158.00 mark seems to face stiff resistance at
50-day SMA, currently near 158.70 level.
