- GBP/JPY plunged and rallied on Monday to keep bids pinned into familiar levels.
- Plenty of UK and Japan data on offering this week.
- The pair remains trapped in rough consolidation levels for the time being.
The GBP/JPY saw an early dip below the 188.00 handle before markets recovered back into familiar levels on Monday, and the Guppy pair continues to trade into familiar consolidation levels heading into a heavy week full of UK and Japanese figures on the economic calendar’s data docket.
This week brings UK labor figures on Tuesday, followed by Wednesday’s UK Consumer Price Index (CPI) inflation. Thursday follows up with Japanese Gross Domestic Product (GDP) figures early in the day, after which the UK brings its own GDP growth print. Friday will round out the week with UK Retail Sales.
UK labor figures, Japan GDP data in the pipe
Tuesday’s UK ILO Unemployment Rate for the quarter ended in December is expected to tick down to 4.0% from the previous quarter’s 4.2%, while Average Earnings Including Bonuses for the annualized quarter through December is expected to soften further, to 5.6% from the previous period’s 6.5%.
The UK’s YoY Core CPI inflation is expected to tick higher on Wednesday, forecast to increase to 5.2% from 5.1%, while headline CPI inflation for January is forecast to recede, expected to print at -0.3% versus the previous month’s 0.4%.
Japanese GDP growth is expected to rebound early Thursday, with fourth quarter GDP forecast to print at 0.3% after the third quarter’s -0.7%.
GBP/JPY technical outlook
GBP/JPY remains well-supported with the pair continuing to trade on the high side of the 200-hour Simple Moving Average (SMA) near 187.20. The pair broke through the near-term median technical barrier last week and has climbed nearly 2% from February’s early lows near 185.25.
The volatile Guppy pair remains bid into multi-year highs, testing the waters just below the 190.00 major price handle, with near-term technical support from the 200-day SMA at 182.20.
GBP/JPY hourly chart
GBP/JPY daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays defensive near 1.0300 as US Dollar rebounds
EUR/USD stays defensive near 1.0300 in the European session on Friday. The expectation of further rate cuts by the European Central Bank drags the Euro while the US Dollar finds its feet amid a cautious optimistic market mood. Mid-tier US data awaited.
GBP/USD holds recovery near 1.2200 amid weak UK Retail Sales data
GBP/USD is off the low but the recovery remains capped near 1.2200 in Friday's European trading. The pair faces headwinds from the unexpected decline in the UK Retail Sales for December. Reusrgent US Dollar demand also weighs negatively on the pair.
Gold faces pressure with traders becoming unsecure after Fed Waller's comments
Gold’s price faces some selling pressure while staying above the $2,700 level on Friday, with some profit-taking occurring after its three-day rally this week. Fed governor Christopher Waller spooked traders by commenting on Thursday that a March interest rate cut should not be ruled out.
Five keys to trading Trump 2.0 with Gold, Stocks and the US Dollar Premium
Donald Trump returns to the White House, which impacts the trading environment. An immediate impact on market reaction functions, tariff talk and regulation will be seen. Tax cuts and the fate of the Federal Reserve will be in the background.
Hedara bulls aim for all-time highs
Hedara’s price extends its gains, trading at $0.384 on Friday after rallying more than 38% this week. Hedara announces partnership with Vaultik and World Gemological Institute to tokenize $3 billion in diamonds and gemstones
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.