The GBPJPY pair is currently hovering around 183.00 with little direction, as market participants eagerly anticipate a catalyst to guide their trading decisions.
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- The GBP/JPY is stuck in the middle near 183.00 as markets await inspiration.
The pair currently trades last at 183.017.
The previous day high was 183.49 while the previous day low was 182.72. The daily 38.2% Fib levels comes at 183.2, expected to provide resistance. Similarly, the daily 61.8% fib level is at 183.02, expected to provide resistance.
The GBP/JPY is strung along the 183.00 handle in Wednesday trading. The United Kingdom’s (UK) inflation reading during the European market session failed to bolster the Pound Sterling (GBP) after the headline printing failed to meet the mark. Guppy traders will now be keeping their heads low ahead of Thursday’s Bank of England (BoE) showing.
UK Consumer Price Index (CPI)figures broadly came in below expectations. August’s monthly inflation printed at 0.3%, compared to the forecast 0.7%, though still an improvement from the previous period’s 0.4% decline.
The UK Retail Price Index also failed to meet market expectations, coming in at 0.6% for the same period. The last print came in at -0.6%, and markets were hoping for 0.9%.
Inflation within the British economy appears to be falling faster than investors initially anticipated, and the swooning pace of price growth will keep the BoE firmly on their path of ‘one and done’. Markets are expecting the UK’s central bank to deliver one more 25-basis-point rate hike tomorrow at 11:00 GMT. The expected hike will bring the BoE’s benchmark rate to 5.5%.
After the BoE’s showing on Thursday, all that remains for the GBP/JPY this week will be the Bank of Japan’s (NoJ) rate call on Friday, along with the UK’s Purchasing Manager Index (PMI) figures.
The BoJ’s interest rate regime is broadly expected to remain at -0.1%, while the UK’s composite PMI reading is forecast to improve slightly, from 48.6 to 48.7. UK Retail Sales will also be landing on Friday, which is expected to rebound from -1.2% to 0.5%.
UK Retail Sales and composite PMI are scheduled to drop at 06:00 and 08:30 GMT, respectively.
The Guppy has been struggling to put distance between itself and the 183.00 level recently, and current action has been under pressure from the 200-hour Simple Moving Average (SMA) currently sinking from the 183.40 region.
The GBP/JPY sunk to a session low just beneath the 182.50 level after the UK’s CPI reading missed the mark, but market flows recovered to keep the pair relatively flat on the day.
On the daily candlesticks, the pair has been consolidating for the better part of a week, trapped near 183.00. The 100-day SMA is providing rising support from the 180.00 major handle, and traders will want to wait for a confirmation before assuming a breakout from the current consolidation zone is a done deal.
Technical Levels: Supports and Resistances
GBPJPY currently trading at 183.01 at the time of writing. Pair opened at 183.23 and is trading with a change of -0.12 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 183.01 |
| 1 | Today Daily Change | -0.22 |
| 2 | Today Daily Change % | -0.12 |
| 3 | Today daily open | 183.23 |
The pair is trading below its 20 Daily moving average @ 184.12, below its 50 Daily moving average @ 183.2 , above its 100 Daily moving average @ 179.69 and above its 200 Daily moving average @ 171.01
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 184.12 |
| 1 | Daily SMA50 | 183.20 |
| 2 | Daily SMA100 | 179.69 |
| 3 | Daily SMA200 | 171.01 |
The previous day high was 183.49 while the previous day low was 182.72. The daily 38.2% Fib levels comes at 183.2, expected to provide resistance. Similarly, the daily 61.8% fib level is at 183.02, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 182.8, 182.38, 182.04
- Pivot resistance is noted at 183.58, 183.92, 184.34
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 183.49 |
| Previous Daily Low | 182.72 |
| Previous Weekly High | 184.39 |
| Previous Weekly Low | 182.52 |
| Previous Monthly High | 186.77 |
| Previous Monthly Low | 180.46 |
| Daily Fibonacci 38.2% | 183.20 |
| Daily Fibonacci 61.8% | 183.02 |
| Daily Pivot Point S1 | 182.80 |
| Daily Pivot Point S2 | 182.38 |
| Daily Pivot Point S3 | 182.04 |
| Daily Pivot Point R1 | 183.58 |
| Daily Pivot Point R2 | 183.92 |
| Daily Pivot Point R3 | 184.34 |
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