- GBP/JPY remains lower on Monday, retreating from 182.00.
- The Yen remains firm ahead of Tuesday’s BOJ meeting.
- Low-impact UK data was generally red on Monday, one last negative piece of data ahead of Thursday’s BOE.
The GBP/JPY pair is trading lower at 181.00, with further declines towards the 180.00 area expected if British Pound (GBP) traders do not find a reason to hit the buy button this week.
The Japanese Yen (JPY) continues to rally in the broader market, down 1.5% from the high of 183.75 reached last week.
The GBP/JPY pair has fallen more than 3% from 186.77 in August, an eight-year high.
Some Japanese economic data, including retail sales and the unemployment rate, will be released early on Tuesday, but barring any significant deviations from the forecast numbers, investors will focus on the Bank of Japan’s interest rate decision. .
The BoJ is generally expected to maintain its negative rate regime at -0.1%, but investors are beginning to see the need for changes to the Japanese central bank’s policy framework as inflation continues to remain higher than what was initially planned.
On the sterling side, sterling traders will be keeping an eye on Thursday’s Bank of England (BoE) rate call, with the UK central bank all but guaranteed to keep rates at 5.25% , as UK economic data continues to miss the mark.
GBP/JPY Technical Outlook
The GBP/JPY pair is retreating towards the 181.00 area on Monday, after failing to rebound towards 182.00.
The path is clear to continue down to 180.00, with the latest swing lows marking a potential resistance zone of 178.00 to 176.00, and the short-term ceiling is at the latest swing highs at 184.00, just below above the 50-day simple moving average (SMA).
On the bearish side, a prolonged bearish run will see the GBP/JPY pair fall to the 200-day SMA which currently rises above 174.00.
GBP/JPY Daily Chart
GBP/JPY Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
