It is the better day for the pound of the United Kingdom as it brought it against the Japanese Yen (JPY) to go in the way forward. In the last week, the fluctuation in its price movement showed constantly, which did not determine the GBPJPY’s upcoming course. The increase on the first day of the week enlightens the hope that this week going to be good for the pair and it could soon get back its optimal position.
Besides all other factors, one of the main reasons for the increase today is the good news of the Markit Manufacturing released by the Index of Manufacturing Purchasing Managers (PMI) on April 01, 2020.
In the manufacturing sector, the Markit economy captures business conditions. Given that the manufacturing sector accounts for a significant proportion of the total GDP, PMI manufacturing is a powerful indicator of business conditions and the overall economic situation in the UK.
Manufacturing production reading rises at 47.8 this month, it’s slightly higher than the economist expectations of 47 but it is below the last month’s index of 45.7 and therefore GBPJPY labels itself with a green candle on the graph at a price of 134.17.
It’s fortunate, it has GBPJPY support levels on the downside. The first strong trendline support at 132.02 which is below the mark, and then the main horizontal support at 123.33 supports the price of this pair as seen in the following graph.
On the other hand, at this position, GBPJPY is loaded with the number of restrictions making the weight from the top of the price of the pair which does not allow the price to move forward, as shown in the figure above.
It’s improving from the last few days, however, but things can’t help the GBPJPY market as long as the economy doesn’t get better, so it might not work at this stage to make the investment decision.