The GBPJPY currency pair, currently trading at 184.632, is facing difficulties in continuing its two-day period of gains due to a combination of various concerns and uncertainties.

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• GBP/JPY struggles to extend two-day winning streak amid mixed concerns.

The pair currently trades last at 184.632.

The previous day high was 184.71 while the previous day low was 184.18. The daily 38.2% Fib levels comes at 184.51, expected to provide support. Similarly, the daily 61.8% fib level is at 184.38, expected to provide support.

GBP/JPY retreats from intraday high to 184.60 as it lacks upside momentum after a two-day winning streak amid mixed catalysts from the UK and Japan. Also probing the pair buyers are the downbeat US Treasury bond yields and cautious mood as the British traders return after Monday’s bank holiday.

Earlier in the day, the British Retail Consortium’s (BRC) annual shop price inflation slumped to the lowest level since October 2022 while flashing 6.9% mark for August, versus 7.6% reported in July.

On the other hand, Japan’s Unemployment Rate offered a surprise increase to 2.7% for July versus 2.5% expected and prior while the Jobs / Applicants Ratio eased to 1.29 for the said month versus 1.30 anticipated and previous readings.

Elsewhere, the US 10-year Treasury bond yields dropped three basis points (bps) to 4.20% and the two-year counterpart declined half a percent to 5.5% the previous day while extending the last weeks’ pullback from the multi-month high. That said, the US 10-year Treasury bond yields remain pressured near 4.19% by the press time whereas the S&P 500 Futures lack clear directions as we write.

Further, the mixed details of Japan’s Coincident Index for June and the Leading Economic Index for the said month also prod the GBP/JPY pair traders. It’s worth noting that Bank of Japan (BoJ) Governor Kazuo Ueda cited a bit below target Japan inflation to defend the currently ultra-easy monetary policy at the Jackson Hole Symposium, which in turn keeps the pair buyers hopeful.

Looking ahead, the British traders’ return to the table and a reaction to the last week’s hawkish bias of Bank of England (BoE) Deputy Governor Ben Broadbent will be important to watch. That said, BoE’s Broadbent cited the need for higher rates due to the wage pressure at the Jackson Hole Symposium, his economic outlook seems to challenge the hawks and the British Pound (GBP) optimists.

Despite the latest inaction, a clear rebound from 21-DMA, around 184.00 by the press time, keeps the GBP/JPY buyers hopeful.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 184.66 at the time of writing. Pair opened at 184.66 and is trading with a change of 0.00% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 183.93, 50 SMA 182.72, 100 SMA @ 177.03 and 200 SMA @ 169.64.

The previous day high was 184.71 while the previous day low was 184.18. The daily 38.2% Fib levels comes at 184.51, expected to provide support. Similarly, the daily 61.8% fib level is at 184.38, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 184.32, 183.99, 183.8
• Pivot resistance is noted at 184.85, 185.04, 185.38

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