GBP/JPY flattens ahead of Japanese Retail Trade figures

The GBP/JPY is caught amidst a congestion pattern as markets mix on the Guppy.
BoJ resumes hinting at the end of negative rates if wages firm up next year.
Post-holiday markets are struggling to find meaningful momentum.

Joshua Gibson FXStreet

The GBP/JPY is back into familiar near-term prices after a failed bull run towards the high side of 182.10, slipping back towards the 181.00 handle. The Japanese Yen is firming up after Bank of Japan (BoJ) Governor Kazou Ueda repeating comments that negative rates could see the end in sight.

BoJ Governor Ueda’s comments sent the Yen slightly higher, but the GBP/JPY remains caught on near-term technical support with limited momentum in either direction.

Forex Today: No support for the Dollar

Japanese Retail Trade figures are due early in the Asia market session where investors will be expecting a slight uptick in retail volumes. Japanese Retail Sales for the year into November are expected to improve from 4.2% to 5%.

UK data is nearly absent from the economic data docket this week, with low-tier Nationwide Housing Prices for October being the only data representation for the GBP, slated for Friday.

GBP/JPY Technical Outlook

The GBP/JPY is consolidating into the 200-hour Simple Moving Average (SMA) just above the 181.00 handle after a brief rally into 182.20.

The pair's flattening is happening just north of the 200-day SMA rising into 179.00, and downside momentum is set to remain limited with the 200-day SMA rising to catch up to the GBP/JPY's nearly 15% rise from 2023's early lows near 156.50

Despite the pair's performance for most of the year, the Pound Sterling remains capped by the Japanese Yen, having declined nearly 4% from the pair's yearly highs near 188.66.

GBP/JPY Hourly Chart

GBP/JPY Daily Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Today last price	181.36
Today Daily Change	0.10
Today Daily Change %	0.06
Today daily open	181.26

Trends
Daily SMA20	182.87
Daily SMA50	184.07
Daily SMA100	183.74
Daily SMA200	178.87

Levels
Previous Daily High	181.3
Previous Daily Low	180.51
Previous Weekly High	184.18
Previous Weekly Low	179.79
Previous Monthly High	188.67
Previous Monthly Low	182.75
Daily Fibonacci 38.2%	181
Daily Fibonacci 61.8%	180.81
Daily Pivot Point S1	180.75
Daily Pivot Point S2	180.24
Daily Pivot Point S3	179.96
Daily Pivot Point R1	181.54
Daily Pivot Point R2	181.81
Daily Pivot Point R3	182.33

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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