GBP/JPY Price Analysis: Struggles around 188.00, on soft UK inflation

GBP/JPY slips below 188.00, but it remains trading in the green amid a risk-on mood.
A daily close below 188.00 could pave the way for a deeper pullback, 187.00 would be the bears' target.
Further upside above 188.28, and GBP/JPY would challenge an eight-year high at 188.80.

Christian Borjon Valencia FXStreet

The British Pound (GBP) remains steady against the Japanese Yen (JPY) during Wednesday’s mid-North American session after reaching a daily high of 188.24; the pair has fallen below the 188.00 mark, courtesy of weak inflation data from the UK. Therefore, the GBP/JPY hovers around 187.94, virtually unchanged.

From a technical perspective, the GBP/JPY is upward biased, but a daily close below 188.00 could pave the way for a deeper pullback, which could extend toward the 187.00 figure. If sellers push prices below that level, the next demand area could be the Tenkan-Sen at 185.75m followed by the Senkou Span A at 185.13. the next support would be 185.00

On the other hand, the GBP/JPY uptrend would continue if it remains above 188.00, with the first resistance seen at the current year-to-date (YTD) high of 188.28. Sentiment further improvement would put into play the November 2015 swing high at 188.80 before buyers challenge the 190.00 figure.

GBP/JPY Price Analysis – Daily Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Today last price	187.96
Today Daily Change	0.13
Today Daily Change %	0.07
Today daily open	187.83

Trends
Daily SMA20	183.75
Daily SMA50	182.99
Daily SMA100	183.02
Daily SMA200	175.52

Levels
Previous Daily High	188.29
Previous Daily Low	186.09
Previous Weekly High	185.97
Previous Weekly Low	184.55
Previous Monthly High	184.33
Previous Monthly Low	178.08
Daily Fibonacci 38.2%	187.45
Daily Fibonacci 61.8%	186.93
Daily Pivot Point S1	186.52
Daily Pivot Point S2	185.21
Daily Pivot Point S3	184.32
Daily Pivot Point R1	188.71
Daily Pivot Point R2	189.6
Daily Pivot Point R3	190.91

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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