The GBP/JPY pair fell to 191.65, showing caution after failing to reach the week’s high due to weak UK services data. The decline in price poses further risk, with support seen at Tenkan-Sen and Senkou Span A levels. Concerns about Japanese intervention are limiting movement in the market as traders await new signals for direction.
The Pound Sterling lost ground against the Japanese Yen during the North American session on Thursday, following disappointing UK Services PMI figures. Currently, the GBP/JPY is trading at 191.65, down by 0.12%.
In terms of technical analysis, the GBP/JPY bounced back from lows of 190.03 but struggled to surpass the week’s high of 192.24. If buyers managed to break above 192.50, it could lead to a move towards 193.00. However, the threat of Japanese intervention is keeping traders on edge.
The pair dipped to 191.59 on Thursday, potentially opening the door for further losses below the Tenkan-Sen at 191.14. The next support levels to watch are Senkou Span A at 190.94 and Kijun-Sen at 190.74. Continued weakness might push the price towards April’s low of 190.03.
In conclusion, the GBP/JPY is facing downward pressure due to weak economic data and intervention concerns. Traders are advised to monitor key support levels for potential price movements in the near future.