- Sterling is in the red against a rising yen, but is struggling to stem declines.
- GBP/JPY is heading lower for the third day in a row.
- BoE policy hearing, outlook for Japan’s midweek holiday.
GBP/JPY sees declines in Monday’s trading as the Japanese yen (JPY) experiences relief from prolonged selling pressure. The pair initially fell to an intraday low of 184.63 to open the trade and is now looking to cut losses and trade back to the 185.50 level.
The pound sterling (GBP) is mixed in the new trading week, with a mixed performance against other major currencies, but it gave up the most to a rebounding yen, falling 0.65% on Monday.
Bank of England Governor (BoE) Andrew Bailey discussed the sticky food price inflation plaguing the UK domestic economy late on Monday, and sterling traders will be looking forward to the BoE’s latest monetary policy hearing due out on Wednesday.
Japanese markets will be closed on Wednesday for Labor Day celebrations on Wednesday, so yen volumes will be thinner than usual.
Today’s price in pounds sterling
The table below shows the percentage change in today’s Pound Sterling (GBP) against the major listed currencies. Sterling was strongest against the Canadian dollar.
The heat map shows the percentage changes of major currencies against each other. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you select the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the box will be EUR (base)/JPY (rate).
GBP/JPY Technical Outlook
GBP/JPY is trading back from eight-year highs near 188.00, falling from last week’s high for the third day in a row. The pair is pulling back to the 50-day simple moving average (SMA) near 183.20.
The longer-term trend for GBP/JPY remains firmly bullish on the charts, with price action trading well above the 200-day SMA at the 176.00 handle.
A continued decline will see sellers fighting the last swing low to the major handle of 180.00, while bidders will have their work cut out for them as they try to recapture 188.00.