GBP/JPY climbs as Yen gives back recent gains, testing 184.00 region

The GBP/JPY is extending into a recovery from last week's downside plunge.
Japan, UK data smattering the economic calendar ahead of Thursday's BoE rate call.
Japan manufacturing, UK manufacturing & employment figures due heading into the mid-week.

Joshua Gibson FXStreet

The GBP/JPY is paring back recent losses sparked by a bull run in market Japanese Yen (JPY) bets after the Bank of Japan (BoJ) leaned unusually hawkish last week. The broader market has since started pulling back on premature Yen bets, giving the Pound Sterling (GBP) a chance to get up off the floor.

UK labor data is slated for Tuesday, with Wednesday seeing an early showing of Japanese manufacturing as well as UK Gross Domestic Product (GDP) and Manufacturing Production.

UK Claimant Count Change is forecast to show an increase in new jobless benefits seekers from 17.8K to 20.3K for November, With the ILO Unemployment Rate seen holding flat at 4.2%, while the Japanese Tankan Large Manufacturing Index for the fourth quarter is expected to improve from 9.0 to 10.0 compared to the third quarter.

Thursday brings the week’s heavy-hitter for the GBP in the Bank of England’s last rate call for 2023. Markets broadly expect the BoE to hold flat on interest rates at 5.25%, but investors will be taking a deep-dive on the BoE’s Monetary Policy Report, where traders will be looking to sniff out the extend to which the BoE is leaning hawkish or bearish heading into the first quarter of 2024.

GBP/JPY Technical Outlook

The GBP/JPY is up over 5% from last week’s plunge into 178.58, but the pair is still down 2.65% from November’s late peak of 188.66. The 50-day Simple Moving Average (SMA) is holding bids to the midrange, with long-term moves catching chart support from the 200-day SMA rising into 178.00.

The 180.00 major handle has propped up the Guppy since the pair climbed over the key level back in June, providing long-term technical support as the GBP/JPY continues to press into the high end despite near-term downside weakness.

GBP/JPY Daily Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Today last price	183.66
Today Daily Change	1.73
Today Daily Change %	0.95
Today daily open	181.93

Trends
Daily SMA20	186.25
Daily SMA50	184.18
Daily SMA100	183.76
Daily SMA200	177.71

Levels
Previous Daily High	182.05
Previous Daily Low	179.56
Previous Weekly High	186.62
Previous Weekly Low	178.59
Previous Monthly High	188.67
Previous Monthly Low	182.75
Daily Fibonacci 38.2%	181.1
Daily Fibonacci 61.8%	180.51
Daily Pivot Point S1	180.31
Daily Pivot Point S2	178.68
Daily Pivot Point S3	177.81
Daily Pivot Point R1	182.8
Daily Pivot Point R2	183.67
Daily Pivot Point R3	185.3

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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