- British Pound tumbled recently against the Japanese Yen, and looks set for more losses in the near term.
- There is a crucial bullish trend line formed on the 4-hours chart of the GBPJPY, which is currently acting as a support for the pair.
- Today in the UK, the PMI service was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics.
- The result was disappointing, as there was a decline from the last reading of 53.7 to 52.3 in April 2016.
The British Pound suffered a lot of losses vs the Japanese Yen, and traded below the 100 and 200 simple moving average on the 4-hours chart. However, there is a major bullish trend line formed on the 4-hours chart of the GBPJPY, which is acting as a hurdle for sellers.
Currently, the pair is consolidating above the trend line support area, but it looks like there is hardly any chance of it trading higher in the near term.
A break below the trend line support area may call for more losses in the GBPJPY pair.
UK Services PMI
Today in the UK, the PMI service, which is an indicator of the economic situation in the UK services sector was released by both the Chartered Institute of Purchasing & Supply and the Markit Economics. The forecast is slated for a minor decline from 53.7 to 53.5 in April 2016. However, the report was negative, as there was a decrease to 52.3.
The report stated that “Business Activity Index fell from 53.7 to 52.3 in April, the lowest since February 2013 and indicative of only a muted rise in services output. In comparison, the index has averaged 55.2 since its inception in July 1996”.
No doubt, the British Pound is under a bearish pressure and may break the support trend line to trade towards 152.00 in the short term vs the yen.