- The GBP/JPY is stuck in familiar levels after a quiet early half of the trading week.
- Japanese CPI inflation and UK GDP growth figures due for the Friday trading sessions.
- Bearish correction in the Guppy is struggling to develop meaningful momentum.
The GBP/JPY continues to struggle to push decisively in either direction and has been constrained between the 182.00 and 181.00 major levels for the past week despite being down 1.7% for September.
The early trading week saw limited economic data releases for both the Pound Sterling (GBP) and the Japanese Yen (JPY), but the week is set to close out with meaningful data for both sides of the Guppy.
Friday sees the Tokyo Consumer Price Index (CPI) inflation reading for Japan, which last printed at 2.9% for the headline annualized figure in August. September's Core Tokyo CPI last saw 4.0% for the same period, and Yen bidders will be watching closely.
Despite Japanese inflation printing above the Bank of Japan's (BoJ) 2% target, the BoJ is concerned about inflation sinking below target in a projected slowdown for Japanese price growth, and the Japanese central bank will be looking for evidence that inflation is anchoring in longer-term before reversing its negative rate policy regime.
On the UK side, Friday will see Gross Domestic Product figures, which is forecast to hold steady at 0.2%. The UK is facing a broad economic slowdown in the economic data, and a miss in forecasts could see the Pound Sterling sagging even lower on the charts.
GBP/JPY technical outlook
The Guppy lifted from yesterday's lows near 180.90 but the GBP/JPY is getting capped by price action just below 181.70. Hourly candles have remained pinned to the 34-hour Exponential Moving Average (EMA) as momentum bleeds out.
On the daily candlesticks, the GBP/JPY is dragging back into the 100-day Simple Moving Average (SMA) just above 180.00, with the 200-day SMA far below current bid levels near 172.00.
The Guppy's medium-term walkback is seeing limited downside, but the slow-motion downside is seeing technical indicators starting to signal oversold conditions, with the Relative Strength Index (RSI) approaching the lower boundaries on a 14-day rolling basis.
GBP/JPY daily 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 climbs back above 1.0750 ahead of ADP, Fed Minutes
![EUR/USD climbs back above 1.0750 ahead of ADP, Fed Minutes](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/photo-of-the-american-and-euro-banknotes-57153806_XtraSmall.jpg)
EUR/USD has regained lost ground above 1.0750 in the European session on Wednesday. The pair draws support from the renewed US Dollar weakness, in the aftermath of the dovish Fed Chair Powell's comments. Eyes turn to US ADP data, Fed Minutes.
GBP/USD retakes 1.2700, looks to US data/Fed minutes
![GBP/USD retakes 1.2700, looks to US data/Fed minutes](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-170160529_XtraSmall.jpg)
GBP/USD is battling 1.2700 in European trading on Wednesday, attempting a modest bounce. Traders appear reluctant and prefer to wait on the sidelines ahead of the FOMC minutes while the UK elections on Thursday also keep them on the edge. US ADP data eyed as well.
Gold jumps toward $2,350, with eyes on key US events
![Gold jumps toward $2,350, with eyes on key US events](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/Gold_Bar_XAU_Precious_Metal_XtraSmall.jpg)
Gold price is closing in on $2,350 in the European trading hours on Wednesday, staging a rebound amid a fresh leg down in the US Dollar. Gold price capitalizes on dovish Fed Chair Powell's remarks on Tuesday, which added to the September rate cut expectations. US ADP data and Fed Minutes on tap.
Bitcoin struggles around $64,000 level
![Bitcoin struggles around $64,000 level](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptocurrenciesusd_XtraSmall.jpg)
Bitcoin faces resistance near the $64,000 daily level, leading to a 1.05% decline in trading on Wednesday. Ethereum and Ripple similarly encounter resistance, resulting in 1% and 0.5% declines, respectively.
ADP Employment Change Preview: US private sector expected to add 160K new jobs in June
![ADP Employment Change Preview: US private sector expected to add 160K new jobs in June](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/a-mock-news-paper-headlines-unemployment-16543089_XtraSmall.jpg)
The United States ADP Research Institute will release its monthly report on private sector job creation for June. The announcement is expected to show that the country’s private sector added 160K new positions in June after adding 152K in May.