- The GBP/JPY is trading into the high side near the 187.00 handle.
- The Pound Sterling saw light gains on Wednesday, setting a new weekly high.
- Japanese markets to be dark on Thursday in observation of Labor Thanksgiving Day.
The GBP/JPY is trading into the high side near 187.00 heading into Thursday's market session, bolstered by a Japanese Yen (JPY) that is seeing some paring back after several days of gains.
The Pound Sterling (GBP) has recovered some ground against the Yen for this week, setting a new peak just beyond 187.00, but the pair is now cycling just below 187.00.
Thursday markets are set to see unsteady volatility and an overall decline in directional momentum with Japanese markets shuttered for the Labor Thanksgiving holiday, but Yen traders will be returning to the fold on Friday.
The UK sees S&P Global/CIPS Purchasing Manager's Index (PMI) figures for November on Thursday, and investors are hoping for the Composite figure to hold steady at 48.7.
The UK Manufacturing PMI Component is expected to tick upwards slightly from 44.8 to a flat 45.0, while the Services Component is seen holding at October's reading of 49.5.
Japanese National Inflation figures will be landing early Friday, but the release is unlikely to move markets in a meaningful way unless the numbers deviate wildly. Japan's National Consumer Price Index (CPI) inflation reading is usually front-run by the Tokyo CPI release a couple of weeks earlier.
Friday also sees the UK GfK Consumer Confidence survey for November, which is expected to improve, albeit slightly, from -30 to -28 as consumers remain negative about the UK's domestic economy.
GBP/JPY Technical Outlook
The GBP/JPY is trading closely with the 187.00 handle, looking for a topside break after early Wednesday's bull run failed to hold chart territory north of the major figure.
The pair is finding intraday support from the 200-hour Simple Moving Average (SMA), and the key for bidders will be to stop the Guppy from reversing course back into the near-term median prices near the 50-hour SMA at 185.80.
Daily candlesticks have the pair trading on the high side of the 50-day SMA, but it's getting difficult to ignore the Guppy's overbought stance, and the Moving Average Convergence-Divergence (MACD) has been printing a bearish divergence.
GBP/JPY Hourly Chart
GBP/JPY Daily Chart
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 holds positive ground above 1.0950 ahead of US CPI release
The EUR/USD pair attracts some buyers to around 1.0980 during the Asian session on Thursday. The Euro edges higher against the Greenback as German conservative leader agreed on a coalition deal with the center-left Social Democrats on Wednesday.
GBP/USD trades near 1.2850 after recovering recent losses, BoE's Breeden speech awaited
GBP/USD recovers its daily losses and continues its winning streak for the third successive session, hovering around 1.2850 during Asian trading hours on Thursday. The British Pound came under pressure following the release of weaker-than-expected data from the RICS Housing Price Balance.
Gold price rallies further beyond $3,100; eyes all-time high amid US-China tariff war
Gold price continues to attract safe-haven flows amid rising US-China trade tensions. Bets for multiple Fed rate cuts weigh on the USD and also benefit the precious metal. A solid recovery in the risk sentiment fails to undermine the safe-haven XAU/USD pair.
XRP back above $2 liquidating $18M in short positions, will the rally continue?
Ripple seeks support above $2.0020 on Thursday after gaining 14% in the past 24 hours. The token trades at $2.0007 at the time of writing, reflecting growing bullish sentiment across global markets.
Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.