The GBP/JPY pair extended gains towards 192.80, fueled by an unexpectedly strong UK Services PMI reading and anticipation surrounding the upcoming Japanese economic releases.

Key Factors:

• UK Services PMI Beat: The 11-month high in the UK Services PMI overshadows a manufacturing PMI miss, boosting the Pound Sterling (GBP) across the board. Services account for a dominant share of the UK economy.
• Focus on Japan: Investors await Friday’s Tokyo CPI inflation data and the Bank of Japan’s (BoJ) interest rate decision and Outlook Report. BoJ Governor Kazuo Ueda’s press conference will be closely watched for hints on the central bank’s policy trajectory.

Technical Outlook:

• Approaching Resistance: GBP/JPY nears a key resistance zone between 193.00 and 192.80.
• Congested Range: The pair trades within a short-term sideways pattern, constrained within April’s range ahead of critical Japanese events.
• Bullish Bias: GBP/JPY remains firmly bullish despite recent consolidation, trading well above the 200-day EMA (184.90), indicating underlying strength.