GBP/JPY keeps red near 200-DMA post-UK PMI

The British Pound maintained its offered tone across the board post UK PMI print, with the GBP/JPY cross struggling to register any meaningful recovery from the very important 200-day SMA support.

Today’s release of slightly lower-than-expected UK construction PMI, coming-in at 52.2 for March as against 52.4 expected and down from previous month’s 52.5, added on to Monday’s disappointing UK manufacturing PMI print and failed to provide any immediate respite for the British Pound. 

Meanwhile, the prevalent risk-off mood continued lending support to the Japanese Yen’s safe-haven appeal and further collaborated to the strong bearish sentiment surrounding the cross. 

With UK data out of the way, broader market risk-sentiment would continue to be a key determinant of the pair’s movement on Tuesday.

Technical levels to watch

On a sustained weakness below the 137.00 handle, the cross is likely to aim towards yearly lows support near 136.45 level before heading towards 135.90-85 horizontal support. On the upside, 138.00 round figure mark now becomes immediate resistance, above which the recovery momentum could get extended towards 138.65 intermediate resistance ahead of the 139.00 handle.