|

GBP/JPY continues to gain ground despite weak UK PMIs

  • The GBP/JPY traded in the 181.26 - 182.81 range, set to close its sixth weekly gain in a row.
  • The Sterling seemed to get traction thanks to the hawkish BoE’s decision on Thursday despite weak PMIs.
  • Soft Japanese inflation figures applied further pressure on the Yen.


On Friday, GBP/JPY continued to push the cross to fresh cycle highs at 182.80 after finding support at the 181.25 area. In that sense, the Sterling continued to gain ground on the back of Thursday’s Bank of England (BoE) hawkish surprise to raise rates by 50 basis points and held its ground despite weak British PMIs from June.

The Sterling maintains hawkish-BoE-momentum

British PMIs came in weak, the S&P Global showed that the Manufacturing PMI from the UK from May, dropped to 46.2 vs the 46.8 expected, while the Services PMI held in expansion territory, coming in at 53.7 but below the 54.8 expected. 

Despite the weak economic data, the Sterling maintained the momentum gained on Thursday after the surprising 50 bps hike by the BoE. In that sense, the statement hinted at more rate hikes confirming that the bank will do “what’s necessary” in order to curve down inflation to 2%. Relating to PMIs, the Bank confirmed that it expects the British Gross Domestic (GDP) to flatten in Q2. However, Governor Andrew Bailey, in the presser, gave more emphasis to inflationary pressures as he stated that “they are still too high, and we have got to deal with it”.

On the other hand, soft inflation figures in Japan are adding pressure on the Yen. The National Consumer Price Index and Core Inflation for May were lower than expected suggesting that the BoJ will maintain its dovish stance. Looking forward, investors will pay close attention to Governors’ Ueda from the BoJ and Christine Lagarde from the ECBs’ speeches next Wednesday at the ECB Sintra Forum.

GBP/JPY Levels to watch

According to both the weekly and daily charts, the GBP/JPY holds a bullish outlook for the short term. In the latter, the positive outlook is more clear as investors tallied a sixth weekly gain, while on the daily chart, indicators are losing some steam.

Upcoming resistance for GBP/JPY is seen at the zone at the 183.00 level, followed by the 183.50 zone and the 184.00 area. On the other hand,the daily low at 181.20 level remains the nearest support for the cross, which if broken, will bring into play the 180.00 zone and 179.00 level.

GBP/JPY Daily chart

GBP/JPY

Overview
Today last price182.77
Today Daily Change0.33
Today Daily Change %0.18
Today daily open182.44
 
Trends
Daily SMA20176.46
Daily SMA50172.26
Daily SMA100167.28
Daily SMA200165.44
 
Levels
Previous Daily High182.56
Previous Daily Low180.72
Previous Weekly High182.04
Previous Weekly Low174.36
Previous Monthly High174.28
Previous Monthly Low167.84
Daily Fibonacci 38.2%181.86
Daily Fibonacci 61.8%181.42
Daily Pivot Point S1181.25
Daily Pivot Point S2180.06
Daily Pivot Point S3179.4
Daily Pivot Point R1183.09
Daily Pivot Point R2183.75
Daily Pivot Point R3184.94

Author

Patricio Martín

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

More from Patricio Martín
Share:

Editor's Picks

EUR/USD steadies near 1.1650 ahead of US Nonfarm Payrolls

EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. Traders remain cautious ahead of the US Nonfarm Payrolls report, which is expected to offer further insight into labor market conditions and the Federal Reserve’s policy outlook. December NFP is forecast to show job gains of 60,000, down from 64,000 in November.

GBP/USD: Further weakness could challenge 1.3400

GBP/USD remains under unabated selling pressure on Thursday, slipping to fresh three-day lows around 1.3415 in response to further improvement in the sentiment surrounding the Greenback ahead of Friday’s key NFP data.

Gold defends $4,450, looks to the crucial US NFP report

Gold struggles to capitalize on the previous day's goodish move up from the vicinity of the $4,400 mark and attracts some sellers while defending $4,450 in the Asian session on Friday. The critical US employment details will offer more cues about the Fed's rate-cut path, which, in turn, will influence the US Dollar price dynamics and provide a fresh impetus to the non-yielding bullion. 

Forecasts for Payrolls are all over the place

Yesterday’s data put the kybosh on the idea the Fed needs to cut rates fairly urgently to protect the labor market. The jobs component of the ISM services index was nicely over 50, and that rising JOLTS voluntary quits rate also points to no real heartache in labor.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

XRP slides as institutional and retail demand falters

Ripple is trading down for the third consecutive day on Thursday amid escalating volatility in the cyrptocurrency market. After peaking at $2.41 on Tuesday, its highest print since November 14 amid the early-year rally, XRP has quickly ran into aggressive profit-taking.