- GBP/JPY is bid for the fourth striaght trading day, having defended key support last week.
- The bounce could gather pace if the UK manufacturing data bettes estimates.
GBP/JPY is currently trading at 145.40, having hit a six-day high of 145.49 a few minutes before press time. The currency pair is reporting gains for the fourth straight trading day, having defended the doible top neckline support of 143.72 last week.
The recovery seen from that key support will likely gather pace later today if the UK’s Markit Manufacturing PMI (Apr), due at 08:30 GMT, blows past expectations, indicating the activity expanded at a faster pace last month.
The index, however, is forecasted to drop to 53.00 from March’s print of 55.1. A weaker-than-expected print could end up pushing GBP/JPY back to the double top neckline support of 143.72.
Apart from the macro data, the pair will likely take cues from the action in the stock markets. As of writing, the futures on the S&P 500 – a global benchmark for equities – is reporting 0.35 percent gains. The anti-risk Japanese Yen will likely remain on the defensive if UK’s FTSE and other regional indices post solid gains.
Pivot points
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