GBP/JPY seeing some topside action, hurdles over 183.00

The GBP/JPY caught a bounce on Monday as investors go risk-on.
Tuesday sees UK labor and PMI data.
Japan has a Tokyo CPI advance inflation reading to close out the week.

Joshua Gibson FXStreet

The GBP/JPY has reclaimed the 183.00 handle in Monday trading as broad-market risk flows turn risk-on, taking safe havens like the Japanese Yen (JPY) down and bolstering the relatively riskier Pound Sterling (GBP) into fresh highs.

The Guppy is trading into its highest bids in over a week, landing just north of the 183.00 handle at 183.28 before a relief pullback drags the pair back down.

The GBP will need all the help it can get this week: with a sedate Monday on the cards, Tuesday is set to kick things off with a bang.

On the docket this week: UK labor, UK PMIs, Tokyo CPI

Early Tuesday at 06:00 GMT sees UK Claimant Count Change and Employment Change numbers; markets expect the UK to see an uptick in people seeking jobless benefits to increase from 0.9K to 2.3K, while the number of employed people is expected to decline 198K, an improvement over the previous reading of -207K, but still in negative territory.

UK Purchasing Manager Index (PMI) figures are also on the docket for Tuesday at 08:30 GMT; both services and manufacturing components are expected to improve slightly, with the composite PMI for October expected to rise from 48.5 to 48.8.

On the Yen side, Japan's next round of inflation figures are due late Thursday at 23:30 GMT. The Core Tokyo Consumer Price Index (CPI) last showed an annualized 2.5% increase, and markets are forecasting that the CPI (minus volatile fresh food prices) will hold steady at that number, printing 2.5% for the year into October.

GBP/JPY Technical Outlook

The GBP/JPY is getting dragged back into the 50-day Simple Moving Average (SMA) on daily candlesticks as Monday's six-day high pins the Guppy into medium-term averages.

The next topside level to beat will be the last swing high 183.82 before bidders can re-challenge multi-year highs set back in August beyond the 186.00 handle.

The floor is priced in at the very low end of early October's unexpected plunge into 178.00, and the long-term outlook has the GBP/JPY firmly buried in the high end with the 200-day SMA leaning bullish, but far below current price action just beneath 174.00.

GBP/JPY Daily Chart

GBP/JPY Technical Levels

GBP/JPY

Overview
Today last price	183.04
Today Daily Change	0.75
Today Daily Change %	0.41
Today daily open	182.29

Trends
Daily SMA20	181.92
Daily SMA50	183.33
Daily SMA100	182.09
Daily SMA200	173.44

Levels
Previous Daily High	182.38
Previous Daily Low	181.3
Previous Weekly High	182.81
Previous Weekly Low	181.02
Previous Monthly High	185.78
Previous Monthly Low	180.82
Daily Fibonacci 38.2%	181.96
Daily Fibonacci 61.8%	181.71
Daily Pivot Point S1	181.6
Daily Pivot Point S2	180.91
Daily Pivot Point S3	180.53
Daily Pivot Point R1	182.68
Daily Pivot Point R2	183.06
Daily Pivot Point R3	183.75

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.

EUR/USD extends slide toward 1.1800 on renewed USD strength

EUR/USD extends its daily slide and trades at a fresh weekly low below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls below 1.3550, pressured by weak UK jobs report

GBP/USD remains under heavy bearish pressure and falls toward 1.3500 on Tuesday. The UK employment data highlighted worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.