GBP/JPY testing up into 182.50 in Monday relief bid for Pound Sterling
|- The GBP/JPY is catching a Monday bid, rebounding from last week's dip.
- It's a heavy week on the economic calendar for the Pound Sterling, with wages, inflation, and Retail Sales inbound.
- Dovish comments from BoE officials are capping upside potential for the GBP.
The GBP/JPY is seeing gains for Monday, trading into 182.50 after Friday's dip into 181.27 on broad-market risk aversion. The Pound Sterling (GBP) is catching some early-week lift against the Japanese Yen (JPY) to kick off the new trading week as Guppy traders brace for a tense showing on the economic calendar this week.
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UK earnings figures are due on Tuesday, and investors are forecasting total Average Earnings (plus bonuses) to dip slightly from 8.5% to 8.3%, with Average Earnings (excluding bonuses) seen holding steady at 7.8% for the quarter into August.
UK Consumer Price Index (CPI) inflation figures are due on Wednesday, with markets expecting the monthly figure for September ticking up slightly from 0.3% to 0.4%, and the annualized figure for September is forecast to decline slightly from 6.7% to 6.5%.
Over the horizon, Friday has UK Retail Sales on the docket, where investors are forecasting a -0.1% decline in September after the previous month's 0.4%.
GBP/JPY Technical Outlook
The GBP/JPY is still down 0.7% from last week's peak at 183.80, but the pair is seeing lift from last week's swing low after catching a rebound from the 200-hour Simple Moving Average (SMA). An extended bullish push could face difficulties in the near-term with the 50-hour SMA pulling down price action from below 182.20.
Longer-term, the Guppy sees constraining price action with the pair waffling just south of the 50-day SMA, and an upside break will need firm bidding support to lift the GBP/JPY back into the year's highs near 186.77 set back in August.
GBP/JPY Hourly Chart
GBP/JPY Technical Levels
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