GBP/JPY finding 185.20 a difficult level to beat as Pound Sterling gets squeezed into the low end

The GBP/JPY is seeing some push-and-pull on Wednesday, close to the day’s opening bids.
185.20 is firming up as a technical support level as highs sag, squeezing the Guppy into the middle.
Early Thursday sees Japanese Gross Domestic Product (GDP).

Joshua Gibson FXStreet

The GBP/JPY is getting knocked around in a tug-of-war as the softening Pound Sterling (GBP) gets stuck in place against the Japanese Yen (JPY), and the GBP/JPY sees a rough intraday range between 185.80 and 185.20.

Chances of a topside recovery for the GBP/JPY withered early Wednesday after the latest semi-annual Financial Stability Report from the Bank of England (BoE). The UK’s central bank continues to see an environment full of challenges and downside risks, with vulnerabilities within the financial system specifically. The only hawkish note for the Financial Stability Report was noting that the UK banking system remains well-capitalized.

Up Next: Japan foreign investment & quarterly GDP

Thursday kicks off a Japan-heavy data docket in the back half of the week with Japanese Foreign Bond and Stock Investment, as well as Japanese Foreign Reserves. Friday brings a Japanese quarterly GDP update, which is expected to hold steady at a -0.5% print for the third quarter.

Friday will close out the trading week with an update on Consumer Inflation Expectations from the BoE, which last showed UK consumers expected inflation to land at 3.6% over the following twelve months.

GBP/JPY Technical Outlook

Intraday action sees the GBP/JPY getting squeezed into the end with prices getting propped up at the 185.20 level, a technical barrier firming up into likely-to-break support if Yen flows don’t reverse.

The 200-hour Simple Moving Average (SMA) is turning bearish from 186.80 as near-term momentum tilts towards the downside.

The GBP/JPY has closed down for six of the last seven consecutive trading session, and a thin downside for Wednesday looks set to chalk in a fourth straight decline with the Pound Sterling slightly back against the Yen, down roughly a tenth of a percent on the day.

GBP/JPY Hourly Chart

GBP/JPY Daily Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Today last price	185.22
Today Daily Change	-0.16
Today Daily Change %	-0.09
Today daily open	185.38

Trends
Daily SMA20	186.64
Daily SMA50	184.15
Daily SMA100	183.71
Daily SMA200	177.42

Levels
Previous Daily High	186.19
Previous Daily Low	185.07
Previous Weekly High	188.53
Previous Weekly Low	186.2
Previous Monthly High	188.67
Previous Monthly Low	182.75
Daily Fibonacci 38.2%	185.5
Daily Fibonacci 61.8%	185.76
Daily Pivot Point S1	184.9
Daily Pivot Point S2	184.42
Daily Pivot Point S3	183.78
Daily Pivot Point R1	186.03
Daily Pivot Point R2	186.67
Daily Pivot Point R3	187.15

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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