During yesterday’s trading session GBP/JPY traded within the range of 172.01-172.53 and closed at 172.21.
At 7:15 GMT, GBP/JPY traded at 171.94, losing 0.19% for the day. The pair touched a daily low at 171.89 at 6:15 GMT, breaching the first key support.
Fundamental view
Annualized industrial output in the United Kingdom probably expanded 2.8% in April, following another 2.3% increase during the preceding month. In monthly terms, industrial production probably increased 0.4% in April, after declining 0.1% in the previous month. The index presents the change in the total inflation-adjusted value of production in sectors such as manufacturing, mining and energetics.
UK’s annualized manufacturing production, a short-term indicator which accounts for almost 80% of nation’s industrial output, probably expanded 4% in April. In March manufacturing output rose at an annualized pace of 3.3%. In monthly terms, production probably increased 0.4% during April. As it is a key component of country’s Gross Domestic Product, in case manufacturing production expanded more than projected, this would have a bullish effect on the sterling.
The Office for National Statistics (ONS) will release the official figures at 8:30 GMT.
Technical view
According to Binary Tribune’s daily analysis, in case GBP/JPY manages to breach the first resistance level at 172.49, it will probably continue up to test 172.77. In case the second key resistance is broken, the pair will probably attempt to advance to 173.01.
If GBP/JPY manages to breach the first key support at 171.97, it will probably continue to slide and test 171.75. With this second key support broken, the movement to the downside will probably continue to 171.45.
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