GBP/JPY sticks close to 197.00 as Yen weakens further

GBP/JPY recovers to familiar highs as JPY recedes.
Japanese GDP growth contracted faster than expected.
Sterling traders looking ahead to next week’s UK CPI inflation.

Joshua Gibson FXStreet

After recovering from a mid-week pullback, GBP/JPY scrambled back towards the 197.00 handle on Thursday. The pair regained ground after Japan’s Gross Domestic Product (GDP) for the first quarter contracted faster than investors expected, further weakening the Japanese Yen (JPY).

Japan reported a -0.5% contraction in Q1 GDP, a deeper growth pullback than median market forecasts of -0.4%. The previous quarter also saw a small downside revision, to 0.0% from the initial print of 0.1%.

Little else of note remains on the economic calendar this week for the Guppy, leaving Sterling traders to focus on next week’s upcoming UK Consumer Price Index (CPI) inflation update. Bank of England (BoE) Governor Andrew Bailey will also be making an appearance, and traders are expected to look for clues about the BoE’s possible path toward rate cuts. BoE Governor Bailey will be speaking at the London School of Economics next Tuesday.

GBP/JPY technical outlook

The Guppy is back into chart paper near the 197.00 handle on Thursday after catching a technical bounce from the 200-hour Exponential Moving Average (EMA) near 195.50. The pair fell in a near-term pullback after intense buying dragged the pair 3% higher from the last swing low into 191.50, but bulls are stepping back in to force the Yen lower against the GBP.

GBP/JPY hourly chart

GBP/JPY daily chart

GBP/JPY

Overview
Today last price	196.89
Today Daily Change	0.41
Today Daily Change %	0.21
Today daily open	196.48

Trends
Daily SMA20	194.32
Daily SMA50	192.33
Daily SMA100	189.74
Daily SMA200	186.73

Levels
Previous Daily High	197.1
Previous Daily Low	195.86
Previous Weekly High	195.34
Previous Weekly Low	191.73
Previous Monthly High	200.59
Previous Monthly Low	190
Daily Fibonacci 38.2%	196.33
Daily Fibonacci 61.8%	196.62
Daily Pivot Point S1	195.86
Daily Pivot Point S2	195.24
Daily Pivot Point S3	194.62
Daily Pivot Point R1	197.1
Daily Pivot Point R2	197.72
Daily Pivot Point R3	198.34

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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