- The GBP/JPY slides on Thursday, giving up more ground.
- The Pound Sterling is struggling to hold onto gains against the Yen.
- 2023 has been a solid year for the Guppy, but difficulties remain looking forward.
The GBP/JPY pair has slid to a new five-week low after tapping into 182.51 on Thursday, falling away from the 184.00 handle heading into the last trading session of the week.
The Pound Sterling (GBP) has struggled to develop further momentum against the Japanese Yen (JPY) recently, with the Guppy flagging towards the 50-day Simple Moving Average (SMA) after failing to maintain a hold of the 186.00 major level in late August.
The GBP/JPY marked in 2023’s low early in January when the pair traded into the 156.00 region. The GBP has done a decent job capitalizing on JPY weakness ever since, with the Guppy still up around 17.50% for the year.
Economic calendar remains light for Friday for GBP and JPY
Consumer Inflation Expectations for the United Kingdom (UK) will be landing during the Friday trading window. The indicator last printed at 3.5%, and markets don’t have typically have a forecast for this data. However, it’s worth noting that British consumers last saw inflation in the UK rising 3.5% over the next twelve months at the indicator’s last reading in June, and inflation expectations are down from the September 2022 reading of 4.9%.
GBP/JPY technical outlook
The Guppy is struggling to find bullish momentum on the 4-hour candles, with the pair reaching lower lows, and a relief rally from this level will see declining resistance from a falling trendline currently parked near 185.00, and the last swing high near 184.25.
On the downside, little near-term support remains, and an extended break will see the pair all set to make a challenge of 182.00 down below, though traders will want to keep an eye out for technical exhaustion. The Slow Stochastic Oscillator is moving into oversold territory, and an extended rebound could see Guppy traders waiting for a bounce before piling in for another leg lower.
GBP/JPY 4-hour chart
GBP/JPY technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD recovers to 1.0300 as traders await US NFP
EUR/USD has erased losses to trade modestly flat at around 1.0300 in European trading on Friday. However, concerns over US President-elect Trump's policies and hawkish Fed expectations keep the US Dollar afloat ahead of the US Nonfarm Payrolls data, capping the pair's rebound.
GBP/USD bounces back to 1.2300, US NFP eyed
GBP/USD is bouncing back to near 1.2300 after finding fresh demand in the European session on Friday. Despite the rebound, the pair remains vulnerable amid persistent US Dollat strength and the UK bond market turmoil. The focus now shifts to the US labor market data for fresh directives.
Gold price prolongs multi-day-old uptrend, refreshes multi-week top ahead of US NFP
Gold price (XAU/USD) gains some follow-through positive traction for the fourth consecutive day and touches a fresh four-month peak, around the $2,680 region during the first half of the European session on Friday.
Nonfarm Payrolls forecast: US December job gains set to decline sharply from November
US Nonfarm Payrolls are expected to rise by 160K in December after jumping by 227K in November. US jobs data is set to rock the US Dollar after hawkish Fed Minutes published on Wednesday.
How to trade NFP, one of the most volatile events Premium
NFP is the acronym for Nonfarm Payrolls, arguably the most important economic data release in the world. The indicator, which provides a comprehensive snapshot of the health of the US labor market, is typically published on the first Friday of each month.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.