The GBPJPY is currently trading around 181.40 with slight losses.

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• The GBP/JPY trades with mild losses near 181.40.

The pair currently trades last at 181.383.

The previous day high was 182.3 while the previous day low was 180.2. The daily 38.2% Fib levels comes at 181.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.0, expected to provide support.

On Monday, the GBP/JPY cross trades near 181.40 after tallying two consecutive days of gains. The JPY’s upside potential is limited as weak Gross Domestic Product (GDP) data from Q2 and mixed Retail Sales from June from China may continue to soften the Japanese economy while markets await inflation data from the UK on Tuesday.

In the previous sessions, the markets recently speculated on a change in the bank’s Yield Control Curve (YCC) due to growing local wages, which favoured the JPY, but still, there are no hints of the Bank of Japan’s (BoJ) officials. Following soft Chinese economic data, investors will focus on Trade Balance data from Japan from June to continue assessing a possible pivot from the BoJ’s ultra-dovish monetary policy stance.

On the other hand, inflation data from the UK will be Tuesday’s highlight. The Consumer Price Index (CPI) from the UK from June is expected to have dropped to 8.2% YoY from the previous 8.7%, while the Core CPI is predicted to remain unchanged at 7.1% YoY. Meanwhile, BoE’s tightening expectations remain steady as the World Interest Rate Probabilities (WIRP) tool suggests that a 50 basis points (bps) hike is largely priced in for the August 3rd meeting, followed by 25 bps hike in September, November and at the beginning of 2024.

In that sense, monetary policy divergences may continue to favour the GBP over the JPY.

The technical outlook for the GBP/JPY seems to have turned neutral for the short term. The Relative Strength Index (RSI) shows a flat slope while the Moving Average Convergence Divergence (MACD) remains in negative territory. To reignite momentum, the bulls must recover the 20-day Simple Moving Average (SMA) at 182.25.

Support Levels: 181.00, 180.50, 179.00.
Resistance Levels: 182.25 (20-day SMA), 182.50, 183.00.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 181.38 at the time of writing. Pair opened at 181.82 and is trading with a change of -0.24 % .

The pair is trading below its 20 Daily moving average @ 182.32, above its 50 Daily moving average @ 176.88 , above its 100 Daily moving average @ 170.78 and above its 200 Daily moving average @ 167.17

The previous day high was 182.3 while the previous day low was 180.2. The daily 38.2% Fib levels comes at 181.5, expected to provide resistance. Similarly, the daily 61.8% fib level is at 181.0, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 180.58, 179.34, 178.48
• Pivot resistance is noted at 182.68, 183.54, 184.78

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