GBP/JPY heading towards 186.00 as dovish BoJ continues to crush the Yen

The GBP/JPY is grinding towards 186.00 as Bank of Japan confirms dovish stance.
BoJ to continue massive bond purchases despite new operations.
GBP/JPY tips into a fresh 9-week high for Monday.

Joshua Gibson FXStreet

The GBP/JPY continues to climb with the Japanese Yen (JPY) continuing to get pushed into the floorboards by the Bank of Japan (BoJ) and its hyper-dovish policy stance.

BoJ Governor Ueda: Will continue massive bond buying even under new operation decided last week

BoJ Governor Kazuo Ueda confirmed early Monday that the Japanese central bank will continue with its hyper-easy monetary policy stance. Despite lifting the upper bound limit on their Yield Curve Control (YCC) mechanism, the BoJ reaffirmed their determination in buying as many Japanese government bonds as it needs to keep the yield curve tightly capped.

The BoJ also reaffirmed their fears that inflation and wage growth will slump below the central bank's target levels, and have dedicated to keep the doors on easy monetary policy as wide as they need to support the Japanese economy.

UK data this week: thin data spread, speaking notes from BoE Gov Bailey

It's a thin week on the economic calendar for the Pound Sterling (GBP), though S&P Global/CIPS Construction Purchasing Manager Index (PMI) for October came in above expectations, printing at 45.6 compared to the previous month's 45.0, beating the median market forecast of a decline to 44.5.

UK BRC Life-For-Like Retail Sales for the year into October will print early Tuesday, forecast to tick down from 2.8% to 2.4%, and Pound Sterling traders will be keeping an eye out for Bank of England (BoE) Governor Andrew Bailey who will be giving a speech at a conference on Wednesday.

GBP/JPY Technical Outlook

The GBP/JPY's push higher on Monday sets a new 9-week high for the pair, and the Guppy is set for a fresh challenge of the 186.00 handle.

The GBP has gained 2.6% against the Yen since last week's low near 180.75, and the pair is making a clean break higher after getting hung up near the 50-day Simple Moving Average (SMA) and the 21-day Exponential Moving Average (EMA), with the two moving averages braiding around the 183.00 level.

GBP/JPY Daily Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Today last price	185.57
Today Daily Change	0.71
Today Daily Change %	0.38
Today daily open	184.86

Trends
Daily SMA20	182.62
Daily SMA50	182.88
Daily SMA100	182.77
Daily SMA200	174.59

Levels
Previous Daily High	185.02
Previous Daily Low	183.23
Previous Weekly High	185.02
Previous Weekly Low	180.77
Previous Monthly High	184.33
Previous Monthly Low	178.08
Daily Fibonacci 38.2%	184.34
Daily Fibonacci 61.8%	183.91
Daily Pivot Point S1	183.72
Daily Pivot Point S2	182.58
Daily Pivot Point S3	181.93
Daily Pivot Point R1	185.51
Daily Pivot Point R2	186.16
Daily Pivot Point R3	187.3

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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