GBP/JPY pinned to ceiling near 186.00 as options expiries rattle Yen markets

The GBP/JPY is trading into the high side for Monday.
Yen options expiries fueled a spike across Yen pairs, but moves proved short-lived.
UK, Japan data due rounding the corner into the mid-week.

Joshua Gibson FXStreet

The GBP/JPY is trading back into recent highs after a spike in Yen rates fueled by Yen-based options expiries failed to generate meaningful moves.

Large blocks of Yen options expiries hit markets, sending JPY-based pairs tumbling on reaction, but technical impacts quickly evaporated and pair are now trading back into the top side.

Japanese Finance Minister Shunichi Suzuki hit markets earlier in the day with constantly-reiterated warnings that the Japanese government is "watching currency markets closely", an oft-lofted threat that has essentially become background noise for investors.

UK wages and labor figures are due Tuesday, with Japanese Gross Domestic Product numbers slated for early Wednesday.

UK Average Earnings are expected to slip from 7.8% to 7.7% for the 3rd quarter ending September, while Japan's 3rd quarter GDP is forecast to return to declines, expected to print at -0.1% compared to the 2nd quarter's 1.2% growth.

GBP/JPY Technical Outlook

Monday's options-fueled spike saw the GBP/JPY touch into the 50-hour Simple Moving Average (SMA) near 185.25, but a lack of momentum has the Guppy trading right back into near-term highs at the 186.00 handle.

Near-term chart action remains well-supported by the 200-hour SMA currently rising into 184.75, with a technical floor from a rejection level at 184.65.

Further topside will see the Guppy set to challenge three-month highs near 186.77.

GBP/JPY Hourly Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Today last price	185.92
Today Daily Change	0.66
Today Daily Change %	0.36
Today daily open	185.26

Trends
Daily SMA20	183.31
Daily SMA50	182.92
Daily SMA100	182.94
Daily SMA200	175.23

Levels
Previous Daily High	185.34
Previous Daily Low	184.64
Previous Weekly High	185.97
Previous Weekly Low	184.55
Previous Monthly High	184.33
Previous Monthly Low	178.08
Daily Fibonacci 38.2%	185.07
Daily Fibonacci 61.8%	184.91
Daily Pivot Point S1	184.82
Daily Pivot Point S2	184.38
Daily Pivot Point S3	184.13
Daily Pivot Point R1	185.52
Daily Pivot Point R2	185.78
Daily Pivot Point R3	186.22

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.

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold drops to daily lows below $4,150

Gold builds on Friday’s retracement and slips back below the $4,150 mark per troy ounce on Monday. The better tone in the US Dollar and a decent bounce in US Treasury yields across the curve keep the yellow metal under pressure for now.

Crypto Today: Bitcoin, Ethereum, XRP extend recovery despite ETFs outflows

Bitcoin edges higher above $82,000, building strong structural support despite roughly $229 million in ETF outflows last week. Ethereum recovers above $2,400 as bulls strive to regain trend control, backed by a subtle recovery in momentum indicators.

Higher than expected inflation shakes markets: What to prepare for?

US CPI report came in stronger than expected, lifting the probability of a December rate hike higher once again. Even though Fed Chair Warsh reinforced expectations of a hold for the October’s meeting, markets now face a two-step event: a likely pause on October 28, followed by an interest rate hike on December 9.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.