GBP/JPY Price Analysis: Hovers around 188.00 on BoJ rate cut speculation

GBP/JPY down, near 188.04, on BoJ policy change rumors.
Sterling's future uncertain without UK data; employment figures crucial.
Technical signs suggest more drops; key support levels watched.

Christian Borjon Valencia FXStreet

The GBP/JPY clings to the 188.00 figure and prints losses of 0.51% in the mid-North American session. The pair exchanges hands at 188.04 after dropping from a daily high of 189.17.

Rumors about a sudden end of negative interest rates by the Bank of Japan (BoJ) sponsored a leg up in the Yen against most G7 currencies. An absent UK economic docket keeps Sterling pressured, though employment figures could favor Cable on Tuesday.

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY has extended its losses below the Tenkan and Kijun-Sen levels, which exacerbated a drop to a four-week low of 187.95. However, buyers lifted the exchange rate, and the pair has bottomed out around the 188.00 mark as of writing. A daily close above the latter and a leg-up could be on the cards.

Otherwise, the downtrend could extend towards the 50-day moving average (DMA) at 187.64, followed by the 187.00 mark. Once cleared, the next support would be the 100-DMA at 185.77.

GBP/JPY Price Action – Daily Chart

GBP/JPY

Overview
Today last price	188.19
Today Daily Change	-0.79
Today Daily Change %	-0.42
Today daily open	188.98

Trends
Daily SMA20	189.89
Daily SMA50	187.53
Daily SMA100	185.75
Daily SMA200	183.92

Levels
Previous Daily High	189.72
Previous Daily Low	188.39
Previous Weekly High	191.19
Previous Weekly Low	188.24
Previous Monthly High	191.33
Previous Monthly Low	185.23
Daily Fibonacci 38.2%	188.9
Daily Fibonacci 61.8%	189.21
Daily Pivot Point S1	188.34
Daily Pivot Point S2	187.7
Daily Pivot Point S3	187.01
Daily Pivot Point R1	189.67
Daily Pivot Point R2	190.36
Daily Pivot Point R3	191.01

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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