Why FBS Cut GBPJPY Spreads: What to Do Now!
The instrument of the week for early April is GBPJPY, where the British Pound Sterling, the fundamental currency of the United Kingdom, is influenced by the monetary policy and economic performance of the Bank of England. The Japanese yen is influenced by Japan's financial condition and the policy decisions of the Bank of Japan.
In the week of April 1-5, reports on PMIs in these countries, which will be released on April 2, are particularly interesting for GBPJPY analysis.
Japan's manufacturing PMI is expected to show a marked improvement, with the forecast suggesting a jump to 54.9 from the previous reading of 52.9. This forecast indicates an expectation of strong growth in the manufacturing sector, reflecting optimism about industrial activity and Japan's economic health. Such results could support the Japanese Yen as they signal robust economic activity.
Similarly, the UK services PMI is expected to show a similar scenario. The forecast points to a value of 49.9, up from 47.5. While this is close to the 50.0 threshold that separates contraction from expansion, it still suggests that contraction is expected in the services sector, albeit slower than before. Nevertheless, this forecast is also quite optimistic.
On the Daily Timeframe, GBPJPY formed an ascending wedge, usually a bearish pattern. However, the moving averages signal bullish sentiment, so the PMIs of both countries on April 2 will be crucial.
If the price breaks the upper trend line and holds above the 193.00 resistance, it will open the way to 200.00.
However, a fall below the 190.00 support will start a bearish scenario with a target of 180.00.
