The GBPJPY currency pair showed some slight improvement on Monday, with the rate standing at 183.028. However, the potential for further increases is currently restricted.
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- GBP/JPY gains some positive traction on Monday, though the upside remains limited.
The pair currently trades last at 183.028.
The previous day high was 183.92 while the previous day low was 182.78. The daily 38.2% Fib levels comes at 183.48, expected to provide resistance. Similarly, the daily 61.8% fib level is at 183.21, expected to provide resistance.
The GBP/JPY cross kicks off the new week on a positive note, albeit lacks follow-through buying and remains confined in Friday’s broader trading range. Spot prices trade around the 183.00 round figure, near the 50-day Simple Moving Average (SMA) during the Asian session and remain well within the striking distance of a five-week low touched last Thursday.
The Japanese Yen (JPY) continues with its relative underperformance in the wake of expectations that the case for an imminent shift in the Bank of Japan’s (Bo) dovish stance is still not very strong. This, along with a generally positive tone around the equity markets, is seen as another factor denting the JPY’s safe-haven status and acting as a tailwind for the GBP/JPY cross. That said, the recent comments by BoJ Governor Kazuo Ueda fueled speculation that the Japanese central bank could move away from ultra-loose policy.
In an interview with Yomiuri newspaper earlier this month, Ueda said that ending negative interest rates is among the options available if the BoJ becomes confident that prices and wages will keep going up sustainably. Apart from this, diminishing odds for more aggressive policy tightening by the Bank of England (BoE) further contribute to capping the upside for the GBP/JPY cross. In fact, BoE Governor Andrew Bailey had told lawmakers that the central bank is now “much nearer” to ending its run of interest rate increases.
Moreover, reviving recession fears and signs that the UK labour market is cooling could put pressure on the BoE to pause its rate-hiking cycle. Traders also seem reluctant to place aggressive bets and prefer to wait on the sidelines ahead of this week’s key data/central bank event risks. The UK consumer inflation figures are due for release on Wednesday, which will be followed by the crucial BoE monetary policy meeting on Thursday. This will influence the British Pound and provide a meaningful impetus to the GBP/JPY cross.
The market attention will then shift to the BoJ monetary policy update on Friday, which could infuse volatility around the JPY pairs. This might further assist investors in determining the next leg of a directional move for the GBP/JPY cross. In the meantime, spot prices seem more likely to consolidate in a range in the wake of a Japanese holiday and absent relevant market-moving economic releases from the UK on Monday.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 183.02 at the time of writing. Pair opened at 183.07 and is trading with a change of -0.03 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 183.02 |
| 1 | Today Daily Change | -0.05 |
| 2 | Today Daily Change % | -0.03 |
| 3 | Today daily open | 183.07 |
The pair is trading below its 20 Daily moving average @ 184.44, below its 50 Daily moving average @ 183.14 , above its 100 Daily moving average @ 179.45 and above its 200 Daily moving average @ 170.86
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 184.44 |
| 1 | Daily SMA50 | 183.14 |
| 2 | Daily SMA100 | 179.45 |
| 3 | Daily SMA200 | 170.86 |
The previous day high was 183.92 while the previous day low was 182.78. The daily 38.2% Fib levels comes at 183.48, expected to provide resistance. Similarly, the daily 61.8% fib level is at 183.21, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 182.6, 182.12, 181.46
- Pivot resistance is noted at 183.73, 184.39, 184.87
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 183.92 |
| Previous Daily Low | 182.78 |
| Previous Weekly High | 184.39 |
| Previous Weekly Low | 182.52 |
| Previous Monthly High | 186.77 |
| Previous Monthly Low | 180.46 |
| Daily Fibonacci 38.2% | 183.48 |
| Daily Fibonacci 61.8% | 183.21 |
| Daily Pivot Point S1 | 182.60 |
| Daily Pivot Point S2 | 182.12 |
| Daily Pivot Point S3 | 181.46 |
| Daily Pivot Point R1 | 183.73 |
| Daily Pivot Point R2 | 184.39 |
| Daily Pivot Point R3 | 184.87 |
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