GBP JPY Improved above 134.20
8/3/2016 12:32:09 PM
GBP/JP Fundamental Analyze: The GBP/JPY cross improved from an early dip to 134.20 region and has now moved closer to 135.00 handle after the release of UK services PMI. As stated by Markit's PMI, UK services sector activity saw a sharp contraction during the month of July, recording its fastest rate of weakening since March 2009. The GBP, however, gained traction as the reading was in-line with first estimates and seems to contribute towards easing some fears of a post-Brexit sharp economic downturn. In the meantime, the Japanese currency was seen holding stable following Tuesday's sharp up-surge, especially versus the US counterpart, helping the GBP/JPY cross to recover from session low. Traders now emphasize on the much awaited BOE monetary policy decision, scheduled to be announced on Thursday. Doubt surrounding introduction of further quantitative easing measures might restrict any sharp appreciation for the GBP. From current levels, a constant move above 135.00 psychological mark is likely to improve the pair immediately towards 135.60 horizontal persistence, above which a bout of short-covering rally seems to lift the pair back above 136.00 handle. On the other hand, failure to maintain its recovery gains above 135.00 handle, and a following declines below 134.65-60 region, now appears to force the pair to break through 134.00 support and head towards testing its next major support near 132.50 region. https://www.fxervin.com/