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.

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