- The GBP/JPY is seeing further downside on Monday, sliding from 182.00.
- Yen continuing to firm up heading into Tuesday's BoJ showing.
- Low-impact UK data came in broadly red for Monday, one last bad print before Thursday's BoE.
The GBP/JPY is trading down into 181.00, with further declines on the cards back into the 180.00 handle if Pound Sterling (GBP) traders can't find a reason to hit the buy button this week.
The Yen (JPY) continues to see a steady recovery across the broader market, taking the Guppy down 1.5% from last week's peak of 183.75.
After getting hammered for most of 2023, the JPY has been seeing a resurgence of late; the GBP/JPY is down over 3% from August's high of 186.77, an eight-year high for the pair.
Early Tuesday brings a smattering of Japanese economic data, including Retail Sales and the Japanese Unemployment Rate, but barring any significant deviations from the forecast figures, investors will be focusing on the Bank of Japan's (BoJ) interest rate call.
BoJ Preview: Three scenarios and their implications for USD/JPY – TDS
The BoJ is broadly expected to hold steady on their negative rate regime of -0.1%, but investors are beginning to gesture towards the need for changes in the Japanese central bank's policy framework as inflation continues to hold higher for longer than initially expected.
On the Pound Sterling side, GBP traders will be looking ahead to Thursday's Bank of England (BoE) rate call, with the UK's central bank nearly guaranteed to hold rates at 5.25% as economic data for the UK continues to miss the mark.
GBP/JPY Technical Outlook
The Guppy is falling back into the 181.00 handle for Monday after failing to etch in a rebound into 182.00.
The way is clear for further downside into 180.00, with the last few extreme swing lows marking in a potential resistance zone from 178.00 to 176.00, and the near-term ceiling sits at the last swing highs into 184.00, just above the 50-day Simple Moving Average (SMA).
On the down side, an extended bear run will see the GBP/JPY pair falling into the 200-day SMA which is currently rising above the 174.00.
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: Negative bias should persist below the 200-day SMA
EUR/USD lost traction and faded the initial bull run to the area of yearly peaks near 1.0530, all following a late bounce in the US Dollar amid steady risk aversion in the global markets.
GBP/USD alternates gains with losses near 1.2480
After climbing to three-week highs above the 1.2500 mark, GBP/USD has lost some momentum and retreated to the 1.2480 range, driven by a modest recovery in the US dollar on Monday.
Gold extends corrective decline towards $2,730
Spot Gold is under strong selling pressure at the beginning of the week, trading around the $2,730 mark in the American session. The bright metal was unable to advance against a battered US Dollar (USD) despite a dismal market mood.
Crypto Market Crash: How corporate investors $58B move after Trump Inauguration triggered Bitcoin price dip
Bitcoin’s price dipped as low as $98,500 on Monday, its lowest in 12 days since January 15. On-chain data trends show how whale investors’ strategic moves after Donald Trump’s inauguration may have triggered the crypto market crash.
Five fundamentals for the week: Fed, ECB and US GDP try to compete with Trump Premium
The gift that keeps on giving – US President Donald Trump continues to be "generous" with market volatility, but this week, he'll face competition from the Fed. A rate decision in the Eurozone, the first release of US GDP for the entire 2024, and the Fed's favorite inflation gauge will all rock markets. Fasten your seatbelts..
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.