The GBPJPY currency pair is experiencing a lack of clear movement during the day on Monday and is trading within a small range.

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• GBP/JPY lacks any firm intraday direction on Monday and oscillates in a narrow trading band.

The pair currently trades last at 181.524.

The previous day high was 182.31 while the previous day low was 181.21. The daily 38.2% Fib levels comes at 181.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.63, expected to provide resistance.

The GBP/JPY cross struggles to gain any meaningful traction on Monday and seesaws between tepid gains/minor losses through the early part of the European session. Spot prices currently trade just above mid-181.00s and remain well within the striking distance of the lowest level since August 7 touched last Thursday.

Speculations that Japanese authorities will intervene in the foreign exchange market to support the domestic currency, along with persistent worries over China, benefit the safe-haven Japanese Yen (JPY) and act as a headwind for the GBP/JPY cross. In fact, Japan’s Finance Minister Shunichi Suzuki issued a fresh warning against the recent JPY weakness and said last week that the government will not rule out any options in addressing excess volatility in currency markets.

The British Pound (GBP), on the other hand, continues with its relative underperformance in the wake of the Bank of England’s (BoE) surprise pause last Thursday, which, in turn, is seen as another factor capping the upside for the GBP/JPY cross. The UK central bank ended a run of 14 straight interest rate hikes in the wake of the recent deceleration of inflation. That said, a more dovish stance adopted by the Bank of Japan (BoJ) limits any meaningful downside for spot prices.

The Japanese central bank refrained from offering any hints about potential alterations to its negative interest rate policy in the near future. In the post-meeting press conference, BoJ Governor Kazuo Ueda noted that there is no change to the way of the policy decision-making process and that the central bank is yet to foresee inflation reaching the 2% target in a stable manner. This, in turn, suggests that the BoJ is more likely to maintain an ultra-loose monetary policy.

The aforementioned mixed fundamental backdrop, meanwhile, is holding back traders from placing aggressive bets and leads to a subdued range-bound price action around the GBP/JPY cross on Monday. Moreover, absent relevant market-moving economic releases further warrants some caution before positioning for a firm intraday direction.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 181.53 at the time of writing. Pair opened at 181.61 and is trading with a change of -0.04 % .

The pair is trading below its 20 Daily moving average @ 183.82, below its 50 Daily moving average @ 183.26 , above its 100 Daily moving average @ 180.07 and above its 200 Daily moving average @ 171.23

The previous day high was 182.31 while the previous day low was 181.21. The daily 38.2% Fib levels comes at 181.89, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.63, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 181.11, 180.61, 180.01
• Pivot resistance is noted at 182.21, 182.81, 183.3

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