GBP/JPY flattens ahead of Japanese Retail Trade figures

The GBP/JPY is caught amidst a congestion pattern as markets mix on the Guppy.
BoJ resumes hinting at the end of negative rates if wages firm up next year.
Post-holiday markets are struggling to find meaningful momentum.

Joshua Gibson FXStreet

The GBP/JPY is back into familiar near-term prices after a failed bull run towards the high side of 182.10, slipping back towards the 181.00 handle. The Japanese Yen is firming up after Bank of Japan (BoJ) Governor Kazou Ueda repeating comments that negative rates could see the end in sight.

BoJ Governor Ueda’s comments sent the Yen slightly higher, but the GBP/JPY remains caught on near-term technical support with limited momentum in either direction.

Forex Today: No support for the Dollar

Japanese Retail Trade figures are due early in the Asia market session where investors will be expecting a slight uptick in retail volumes. Japanese Retail Sales for the year into November are expected to improve from 4.2% to 5%.

UK data is nearly absent from the economic data docket this week, with low-tier Nationwide Housing Prices for October being the only data representation for the GBP, slated for Friday.

GBP/JPY Technical Outlook

The GBP/JPY is consolidating into the 200-hour Simple Moving Average (SMA) just above the 181.00 handle after a brief rally into 182.20.

The pair's flattening is happening just north of the 200-day SMA rising into 179.00, and downside momentum is set to remain limited with the 200-day SMA rising to catch up to the GBP/JPY's nearly 15% rise from 2023's early lows near 156.50

Despite the pair's performance for most of the year, the Pound Sterling remains capped by the Japanese Yen, having declined nearly 4% from the pair's yearly highs near 188.66.

GBP/JPY Hourly Chart

GBP/JPY Daily Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Today last price	181.36
Today Daily Change	0.10
Today Daily Change %	0.06
Today daily open	181.26

Trends
Daily SMA20	182.87
Daily SMA50	184.07
Daily SMA100	183.74
Daily SMA200	178.87

Levels
Previous Daily High	181.3
Previous Daily Low	180.51
Previous Weekly High	184.18
Previous Weekly Low	179.79
Previous Monthly High	188.67
Previous Monthly Low	182.75
Daily Fibonacci 38.2%	181
Daily Fibonacci 61.8%	180.81
Daily Pivot Point S1	180.75
Daily Pivot Point S2	180.24
Daily Pivot Point S3	179.96
Daily Pivot Point R1	181.54
Daily Pivot Point R2	181.81
Daily Pivot Point R3	182.33

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.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.