GBP/JPY decline stalling on key 182 handle

FXStreet (Guatemala) - GBP/JPY is trading at 182.17, down -0.89% on the day, having posted a daily high at 184.69 and low at 181.97.

GBP/JPY has crashed through the support and the direction of the pair has turned on its head due to the recent data from the UK. First up, the disappointment in the reading of the unemployment data arriving from the UK as 6.0% vs 5.9% and then also the claimant count change reading -20.4k vs -22.0k rattled sterling markets. Then the UK’s inflation report that came out more dovish than expected put into question the timings of the BoE’s requirement to hike rates next year. The cross is holding onto the 182 handle by the skin of its teeth for now, but is almost back to the where it rallied at the beginning of this week. The handle is a strong foothold for the pair and the fundamentals on the Yen are likely to limit the momentum of the decline in the pair, but should the handle give way, 181.10 is the last defence for a wide open correction.

GBP/JPY noteworthy levels

Spot is presently trading at 182.19, and next resistance can be seen at 182.37 (Daily Classic S1), 182.58 (Hourly 100 SMA), 183.10 (Hourly 20 EMA), 183.21 (Daily Classic PP) and 183.82. Support below can be found at 181.98 (Weekly Classic PP), 181.92 (Hourly 200 SMA) and 181.77.