Because of the Markit Manufacturing PMI release, the British pound (GBP) made gains against the Japanese yen (JPY) on Thursday, bringing the GBP/JPY currency pair above 153.00.
Today, the Chartered Institute of Purchasing & Supply and Markit Economics published the figures for UK Business Manufacturing purchasing managers’ index (PMI) news. The Markit manufacturing PMI registered the figure of 58.9 in March compared to the figure of 57.9, the month before data.
The PMI manufacturing is a measure of the manufacturing sector’s economic health in the United Kingdom. It’s worth remembering that the service sector in the United Kingdom does not affect, either positive or negative. Traders want the highest possible reading since it will be viewed favorably by the GBP. A reading of more than 50 indicates expansion, while a reading of less than 50 indicates contraction.
The GBP/JPY pair might find multiple support levels preventing the price from decreasing below the listed price tag on the downside.
Whereas, The Bank of Japan (BoJ) released numbers of the manufacturing index Yesterday (March 31, 2021). As per economists, the manufacturing Index might remain 0 compared to the reading of -10 in the month before. It beat up the expectation and stood at the figure of 5.
It is a leading indicator of the Japanese economy, as the manufacturing industry drives the export-oriented economy’s growth. A result above 0 indicates that the JPY is positive (or bullish), while a result below 0 indicates that the JPY is bearish.
This news might slump the currency pair of GBP/JPY.
Conclusion
Considering the pair’s recent price actions, buying the pair about 150.58 could result in some short- to medium-term gains.