GBP/JPY Outlook (24 June 2021)

#OPINIONLEADER#

ByJin Dao Tai

 JUN 24, 2021

Overall, GBP/JPY is ranging across.

The UK flash PMI data released yesterday indicated continued expansion in the manufacturing sector while a slight slowdown in the services sector was likely due to the extension of COVID restrictions into July.

• Flash Manufacturing PMI (Actual: 64.2, Forecast: 64.1, Previous: 65.6 revised from 66.1)
• Flash Services PMI (Actual: 61.7, Forecast: 62.9, Previous: 62.9 revised from 61.8)

The Bank of England (BoE) will be announcing their monetary policy decision later at 1900 (GMT+8). The central bank is expected to keep monetary policy unchanged. Pay attention to whether the BoE is looking into quantitative easing (QE) tapering. The forecast for the asset purchase facility votes indicates that one committee member continues to vote for a cut in QE. With the recent rise in UK inflation and the strong economic recovery, more committee members may be voting for a tapering.

Currently, GBP/JPY is testing to break above the key level of 155. Its next support zone is at 153.800 and the next resistance zone is at 156.000.

Look for buying opportunities of GBP/JPY if it breaks above the key level of 155.