GBP/JPY churns on Friday, trying to hang onto 182.00
|- The GBP/JPY sees up-and-down action to cap off the trading week.
- Japan inflation continues to weaken, UK sees upside GDP surprise.
- Next week sees little of note on the economic calendar for both the GBP and JPY.
The GBP/JPY is trying to hang onto territory just north of the 182.00 handle, scrambling for a foothold near 182.25 after reaching a Friday peak of 183.00 on UK data beats.
The UK chalked in a forecast-beating print for its Gross Domestic Product (GDP) on Friday. UK GDP came in at an annualized 0.6% for the second quarter, above the expected 0.4%.
The GDP beat gave the Pound Sterling (GBP) a lift to Friday's high of 183.02, but a reversal in broad-market risk appetite took the Guppy back into an intraday low near 181.90.
The Japanese Tokyo Consumer Price Index (CPI) for September came in under the previous reading, reaffirming a continued slowdown in Japanese inflation. Japan's Tokyo CPI printed at an annualized 2.8% versus the previous 2.9%. Tokyo Core CPI (inflation excluding food prices) declined faster than expected, printing at 2.5%. Markets forecast a decline to 2.6% versus the previous 2.8%.
Japan's Unemployment Rate also missed the mark, holding steady at 2.7% and flubbing the market forecast decline to 2.6%.
GBP/JPY technical outlook
The GBP/JPY is struggling to keep itself above the 200-hour Simple Moving Average (SMA) currently marked in at the 182.00 handle, and intraday action sees the pair getting hung up on the 34-hour hour Exponential Moving Average (EMA).
Daily candlesticks sees the Guppy hung up between the 34-day EMA and the 100-day SMA at 182.93 and 180.68 respectively.
The pair has seen a slow bleed from August's peaks near 186.77, but still remains firmly in bullish trend territory with the 200-day SMA far below price action near 172.00.
GBP/JPY daily chart
GBP/JPY technical levels
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