GBP/JPY afloat near 189.00 amid risk jitters, bearish bias prevails

GBP/JPY holds near the 189.00 zone but upside remains limited
Market sentiment rattled by Fed uncertainty and weak UK inflation outlook
Technical picture tilts bearish with key resistance at 188.93 and 189.72

Patricio Martín FXStreet

GBP/JPY trades modestly higher near 189.00 during Tuesday’s session after bouncing from intraday lows around 187.47. The pair’s upside follows a minor recovery in the Pound Sterling, which briefly reached 1.3423 against the US Dollar before retreating amid political and economic crosswinds. President Trump’s latest remarks targeting Fed Chair Powell and renewed speculation around the Fed’s independence continue to weigh on risk sentiment and cast a shadow over the broader USD outlook.

Meanwhile, the Japanese Yen remains well supported by safe-haven flows and expectations that the Bank of Japan (BoJ) will continue tightening policy. This dynamic keeps JPY resilient across G10 crosses. The British Pound, while still outperforming many peers, shows signs of exhaustion following a strong rally, as traders begin to price in possible rate cuts by the Bank of England (BoE) due to weak inflation and labor market trends.

From a technical perspective, GBP/JPY flashes a bearish signal despite today’s modest gains. The pair trades near the top of its daily range (187.47–188.83), but the MACD and Awesome Oscillator both support selling pressure. The Relative Strength Index (RSI) remains neutral at 44.74, while moving averages paint a clearly bearish backdrop. The 20-day (190.32), 100-day (192.15), and 200-day (192.84) Simple Moving Averages all slope lower, joined by bearish confirmation from the 10-day EMA (188.94) and 30-day EMA (190.25). Resistance is found at 188.81, 188.94, and 189.73, while support lies at 188.57.

The overall trend leans negative unless a sustained break above 189.70 materializes. For now, GBP/JPY remains vulnerable to deeper pullbacks amid political risk and technical headwinds.

GBP/JPY Daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

EUR/USD looks mildly offered near 1.1660 ahead of US CPI

EUR/USD faces some renewed selling pressure, always below the 1.1700 mark and navigating a tight range on the back of a decent uptick in the US Dollar. In the meantime, investors remain cautious ahead of the release of the key US inflation data tracked by the CPI.

GBP/USD challenges daily lows near 1.3460 prior to US inflation

GBP/USD struggles for direction and slips back to the lower end of the range near 1.3460 on turnaround Tuesday. Cable trades in a narrow range amid a bid bias in the Greenback ahead of the publication of the December US CPI prints.

Gold comes under pressure below $4,600, focus on US CPI

Gold prices trade with modest losses and recedes to the sub-$4,600 region on Tuesday, reversing three consecutive daily pullbacks. The yellow metal’s correction comes amid an improvement in the US Dollar prior to the release of the US inflation rate.

CPI Data expected to show stable inflation in December with limited implications for Fed policy

The US Bureau of Labor Statistics will publish December’s Consumer Price Index report on Tuesday at 13:30 GMT. The report is expected to show that prices remained broadly stable in the last month of 2025. It’s a key read on inflation and could stir some short-term moves in the US Dollar.

More pressure on the Federal Reserve emerges

News broke on Sunday night that the Federal Reserve received grand jury subpoenas from the Department of Justice on Friday, escalating the Trump administration's pressure on the nation's central bank.

Meme Coins Price Prediction: DOGE, SHIB, and PEPE bulls struggle to regain strength

Meme coins, including Dogecoin, Shiba Inu, and Pepe remain under extreme selling pressure, recording roughly seven days of downtrend following the January 4 spike. The meme coins risk a bearish shift in momentum as buying pressure subsides, potentially leading to further declines.