GBP/JPY Bounces off 148.550 – Investors Eyeing UK Manufacturing PMI
Arslan Butt • 1 min read
The Japanese yen is trading bullish as the risk-off sentiment seems to get weaker before the NFP later this week. Today, the UK’s Manufacturing PMI is under the spotlight and this may give us quick trades during the European session.
Quick Technical Outlook
GBP/JPY is heading north as the market is following the technical setups. On the 2-hour chart, the GBP/JPY has formed a couple of doji candles, followed by a sharp bearish trend. This signifies that the bears are exhausted and bulls may dominate the market.
Secondly, the RSI and Stochastics are trading in the oversold region. Unfortunately, we missed the entry here as this came overnight. But no regrets, as I’m seeing another trade near 149.550.
GBP/JPY – 2 – Hour Chart
The 50 EMA is likely to provide an immediate resistance to GBP/JPY near 149.350 while the old symmetric triangle is likely to add selling pressure up at 149.550.
GBP/JPY – Trading Plan
For now, the investors are eyeing the UK manufacturing PMI figure which is due in an hour. So, the idea is to stay bullish above 148.950 and bearish below 149.650 with a 30 pips stop and 50 pips take profit. Good luck!