GBP/JPY climbs to fresh daily top, beyond mid-191.00s after mixed UK PMIs

GBP/JPY gains some positive traction in reaction to the upbeat UK Services PMI.
A positive risk tone undermines the safe-haven JPY and further lends support.
Intervention fears might cap the upside for the cross ahead of the BoJ on Friday.

Haresh Menghani FXStreet

The GBP/JPY cross attracts some dip-buying near the 190.85-190.80 region on Tuesday and climbs to a fresh daily peak during the first half of the European session. Spot prices currently trade around the 191.60 area and look to build on the overnight bounce from a one-week low.

The British Pound (GBP) gets a goodish lift following the better-than-expected release of the flash UK Services PMI, which rose to 54.9 in April from the previous month's final reading of 53.1. Apart from this, a modest US Dollar (USD) downtick, to a larger extent, overshadows an unexpected contraction in the UK manufacturing sector and turns out to be a key factor acting as a tailwind for the GBP/JPY cross.

The Japanese Yen (JPY), on the other hand, continues with its relative underperformance in the wake of the Bank of Japan's (BoJ) cautious approach towards further policy tightening. Furthermore, hopes that the Iran-Israel conflict will not escalate further remain supportive of a generally positive risk tone, which further seems to undermine the safe-haven JPY and lends additional support to the GBP/JPY cross.

Traders, meanwhile, remain on alert in the wake of speculations that Japanese authorities will intervene to prop up the domestic currency. This is holding back the JPY bears from placing aggressive bets ahead of the crucial BoJ policy decision on Friday. In the meantime, speculations about more aggressive policy easing by the Bank of England (BoE) might further contribute to capping gains for the GBP/JPY cross.

GBP/JPY

Overview
Today last price	191.75
Today Daily Change	0.52
Today Daily Change %	0.27
Today daily open	191.23

Trends
Daily SMA20	191.59
Daily SMA50	190.71
Daily SMA100	187.55
Daily SMA200	185.61

Levels
Previous Daily High	191.7
Previous Daily Low	190.32
Previous Weekly High	192.84
Previous Weekly Low	190.3
Previous Monthly High	193.54
Previous Monthly Low	187.96
Daily Fibonacci 38.2%	190.85
Daily Fibonacci 61.8%	191.18
Daily Pivot Point S1	190.47
Daily Pivot Point S2	189.7
Daily Pivot Point S3	189.09
Daily Pivot Point R1	191.85
Daily Pivot Point R2	192.47
Daily Pivot Point R3	193.23

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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