GBP/JPY: new catalysts are badly wanted

FXStreet (Moscow) - GBP/JPY is stuck is a tight range on quiet Asian session

UK PMI is interesting, but not enough for bulls

GBP/JPY started the week in bearish mood, the cross set Monday’s low at 171.78, but managed to close above the pivotal 172.00 level (at 172.31). JPY was in demand due to anti-risk sentiments, but it seems that investors are not ready for harsh decisions, as Japanese markets are still closed for the Golden Week. Today 172.00 is the key level form the technical point of view, though the bears will need to get a firmer footing below yesterday’s low to extend the downside to 171.30 and then to 171.00. Fundamentally, we are waiting for UK Service PMI, though no surprises are expected. The index will show that British economic conditions are improving. GBP might get supported but GBP/JPY is likely to be limited by 172.50 resistance.

What are today’s key GBP/JPY levels?

Resistance can be found ahead of spot at 172.29 [Last Price], 172.29 (Weekly Low), 172.38 (Weekly Classic PP), 172.40 (Daily High), 172.51 (Hourly 100 SMA) and 172.61 (Yesterday's High).
Below, we can see support at 172.29 (Daily Open), 172.27 (Hourly 200 SMA), 172.25 (Hourly 20 EMA), 172.22 (Daily Classic PP) and 172.20 (Daily Low).