#GBPJPY @ 157.388 is oscillating in a narrow range below 158.00 as the focus shifts to US economic data. (Pivot Orderbook analysis)

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• GBP/JPY is oscillating in a narrow range below 158.00 as the focus shifts to US economic data.
• An expression of exit from the secular period-long ultra-expansionary monetary policy by the BoJ is supporting the Japanese Yen.
• UK production activities have been declining consecutively for the past four months.

The pair currently trades last at 157.388.

The previous day high was 161.01 while the previous day low was 157.72. The daily 38.2% Fib levels comes at 158.98, expected to provide resistance. Similarly, the daily 61.8% fib level is at 159.76, expected to provide resistance.

The GBP/JPY pair is displaying topsy-turvy moves below the crucial resistance of 158.00 in the Asian session. The cross is showing a balanced profile as investors are awaiting the release of the United Kingdom economic data for fresh impetus.

On Thursday, GBP/JPY was dumped by the market participants after the Bank of Japan (BoJ) announced that the central bank will review the side effects of a decade-long easy monetary policy approach in spurring economic growth and inflation.

Chatters about a shift in the approach of the BoJ towards the price index are growing after the central bank stretched the range of 10-year Japan Government Bonds (JGSs). In a policy statement, the BOJ said the move was intended to “improve market functioning and encourage a smoother formation of the entire yield curve while maintaining accommodative financial conditions. “

Meanwhile, International Monetary Fund (IMF) Managing Director Kristalina Georgieva crossed wires, via Reuters, early Friday morning in Asia suggesting an accommodative policy stand for the BOJ. The pressure from labor on increases in labor compensation has not led to any dramatic change. In other words, there is no driver for inflation from there.

An adjustment to the central bank’s debt yield curve control regime was not driven by an increase in inflation, which remains very close to the bank’s 2% target.

On the United Kingdom front, investors are keeping an eye on the release of economic data. According to the consensus, the Industrial and Manufacturing Production (Nov) will contract by 3.0% and 4.8% on an annual basis. It is worth noting that UK production activities have been declining consecutively for the past four months. A spree of slowdown could weaken inflation expectations further, which will ease some troubles for the Bank of England (BOE) policymakers.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 157.69 at the time of writing. Pair opened at 157.81 and is trading with a change of -0.08 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 160.35, 50 SMA 164.22, 100 SMA @ 164.23 and 200 SMA @ 163.67.

The previous day high was 161.01 while the previous day low was 157.72. The daily 38.2% Fib levels comes at 158.98, expected to provide resistance. Similarly, the daily 61.8% fib level is at 159.76, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 156.68, 155.56, 153.39
• Pivot resistance is noted at 159.97, 162.14, 163.26

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