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GBP/JPY loses 152.00 handle on Yen bump

4/11/2018, 10:02:11 AMBasics of Trading
GBP/JPY loses 152.00 handle on Yen bump

The GBP/JPY knocked lower to 151.70 following Japanese Machine Orders buoying the Yen, but the pair has recovered back towards 151.90 after dropping from the 152.00 handle.

Japanese Machine Orders came in better than expected, with the month-on-month figure printing at 2.1 percent, a clear beat of the expected -2.5 percent contraction, but still under the previous reading of 8.2 percent.

The Sterling has Industrial and Manufacturing Production figures in the session ahead, due at 08:30 GMT. Month-on-month Industrial Production figures are expected to contract to 0.4 percent compared to the previous reading of 1.3 percent, while Manufacturing Production is expected at 0.2 percent, a slight uptick from the previous 0.1 percent.

The pair is holding steady near yesterday's highs after broader markets went risk-on thanks to calming words from China's President Xi Jinping at the Boao  Forum yesterday, who stated that he's open to using negotiations to resolve trade conflicts, and also intends to open the Chinese economy to foreign influence, in a reiteration of the same promises he made in 2013.

GBP/JPY Levels to watch

The GBP/JPY is lifting steadily in April, and the pair is set to challenge resistance at late January's swing low of 152.25, with further resistance at the year's high of 156.60, while a bearish correction will have to contend with March's highs at 150.40 and the 200-day SMA at 148.65.