GBP/JPY advances to 181.80 following BoJ rate decision, UK data eyed

GBP/JPY gains momentum around 181.85 after the Bank of Japan (BoJ) key event.
BoJ decided to keep its short-term rate target of -0.1% and its 10-year bond yield target of around 0%.
The Bank of England (BoE) maintained the benchmark rate at 5.25% on Thursday.
Market players will monitor the UK Retail Sales, Purchasing Manager Index (PMI) data due later on Friday.

Lallalit Srijandorn FXStreet

The GBP/JPY cross surges to 181.80 after accelerating the downside momentum to a seven-week low of 180.70 during the Asian session on Friday. The rebound of the cross is bolstered by the Bank of Japan (BoJ) interest rate decision after central bank policymakers decided to maintain the current monetary policy unchanged.

After the highly-anticipated September monetary policy meeting, the Bank of Japan (BoJ) board members decided to keep its short-term interest rate target of -0.1% and its 10-year bond yield target of around 0%, as widely expected by the market. However, a divergence in monetary policy between the BoJ and the Bank of England (BoE) weighs on the Japanese Yen (JPY) and acts as a tailwind for the GBP/JPY cross.

Earlier on Friday, Japan’s National Consumer Price Index (CPI) for August came in at 3.2% YoY from 3.3% in July. Additionally, the National CPI ex Fresh Food improved from 3.0% in July to 3.1% in August, whereas the National CPI ex Food, Energy came in at 4.3% compared to 4.3% in previous readings.

The Bank of England (BoE) stunned market participants on Thursday by maintaining the benchmark rate at 5.25% rather than raising it by 25 basis points (bps) to 5.5% as anticipated. British central bank decided to pause its long run of interest rate hikes as the economy slowed and inflation decreased, but BoE Governor Andrew Bailey underlined that the central bank did not believe its work was over. He added that he would not forecast the BoE's next action, but that it would be "very, very premature" to cut interest rates.

Moving on, the UK Retail Sales and Purchasing Manager Index (PMI) data will be released on Friday. The monthly Retail Sales for August are expected to improve from -1.2% to 0.5%, while Composite PMI is expected to rise from 48.6 to 48.7. Traders will take cues from these figures and find trading opportunities around the GBP/JPY cross.

GBP/JPY

Overview
Today last price	181.76
Today Daily Change	0.28
Today Daily Change %	0.15
Today daily open	181.48

Trends
Daily SMA20	183.95
Daily SMA50	183.27
Daily SMA100	179.96
Daily SMA200	171.15

Levels
Previous Daily High	183.13
Previous Daily Low	180.82
Previous Weekly High	184.39
Previous Weekly Low	182.52
Previous Monthly High	186.77
Previous Monthly Low	180.46
Daily Fibonacci 38.2%	181.71
Daily Fibonacci 61.8%	182.25
Daily Pivot Point S1	180.49
Daily Pivot Point S2	179.5
Daily Pivot Point S3	178.18
Daily Pivot Point R1	182.8
Daily Pivot Point R2	184.12
Daily Pivot Point R3	185.11

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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