- British Pound moved higher against the Japanese Yen, and it looks set for more gains.
- There is a bullish trend line formed on the hourly chart of the GBPJPY pair, which is acting as a support.
- UK Construction Purchasing Managers Index (PMI) was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics.
- UK Construction moved down from 55.0 to 54.2 in February 2016, less than the forecast of 55.5.
The British Pound formed a nice bottom against the Japanese Yen and started to move higher. There is a bullish trend line formed on the hourly chart of the GBPJPY pair, which may act as a catalyst and take the pair higher.
The pair is currently trading near the 160.20 level, and it looks like it may break it to trade towards the 160.40 level. The next hurdle on the upside is around 160.50.
On the downside, we need to monitor the trend line support area carefully if looking to enter a buy trade.
UK Construction PMI
Earlier today, the UK Construction Purchasing Managers Index (PMI), which captures business conditions in the Construction sector was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The forecast was lined up for a rise from 55.0 to 55.5 in Feb 2016. However, the result was disappointing, as there was decline to 54.2.
The report highlighted that “Although still above the 50.0 value that separates expansion from contraction, the latest reading pointed to one of the weakest rises in construction output seen over the past two-and-a-half years”.
In short, the GBPJPY pair looks set for more gains, and the pair could trade towards the 160.50-60 levels.