GBP/JPY maintains its position above 189.00 psychological level ahead of UK Retail Sales

GBP/JPY gains ground ahead of a slew of data releases from the United Kingdom.
UK Retail Sales (MoM) could improve to 1.5% from the previous 3.2% decrease.
BoJ Governor Kazuo Ueda expects the monetary conditions in Japan to have remained accommodative.

Akhtar Faruqui FXStreet

GBP/JPY receives upward support ahead of the release of Retail Sales data from the United Kingdom (UK) due on Friday. The monthly report for January is expected to show an improvement of 1.5%, swinging from the previous decrease of 3.2%. While year-over-year report could print a reading of -1.4% as compared to the previous -2.4 reading. The GBP/JPY cross inches higher to near 189.10 during the Asian trading hours.

GBP/JPY cross faced challenges as the Japanese Yen (JPY) cheered the remarks from Japan's top officials, hinting at a potential intervention in the Forex market. Additionally, the escalated geopolitical tensions in the Middle East could have increased demand for the safe-haven JPY and dragged the GBP/JPY cross downward.

Bank of Japan (BoJ) Governor Kazuo Ueda stated on Friday that the specific methods for rolling back stimulus would hinge on the prevailing economic conditions. Considering the current economic and price outlook, monetary conditions in Japan are expected to remain accommodative even after the cessation of negative rates.

The quarterly growth of Gross Domestic Product (GDP) extended its decline to 0.3% in the fourth quarter of 2023 compared to the previous contraction of 0.1%. The GDP (YoY) growth surprisingly declined by 0.2% against the expected increase of 0.1%, swinging from the growth rate of 0.2%.

The United Kingdom's economy has officially entered a technical recession, marked by two consecutive quarters of negative GDP growth. Furthermore, Bank of England policymaker Catharine L. Mann mentioned that the central bank requires at least one more set of inflation data before determining its next steps.

GBP/JPY: additional levels to watch

Overview
Today last price	189.06
Today Daily Change	0.17
Today Daily Change %	0.09
Today daily open	188.89

Trends
Daily SMA20	187.83
Daily SMA50	184.71
Daily SMA100	184.45
Daily SMA200	182.5

Levels
Previous Daily High	189.27
Previous Daily Low	187.98
Previous Weekly High	188.87
Previous Weekly Low	186.18
Previous Monthly High	188.94
Previous Monthly Low	178.74
Daily Fibonacci 38.2%	188.47
Daily Fibonacci 61.8%	188.77
Daily Pivot Point S1	188.16
Daily Pivot Point S2	187.42
Daily Pivot Point S3	186.87
Daily Pivot Point R1	189.45
Daily Pivot Point R2	190
Daily Pivot Point R3	190.73

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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