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GBP/JPY seeking a foothold on 184 handle

FXStreet (Guatemala) - GBP/JPY is trading at 183.78, up 0.97% on the day, having posted a daily high at 184.00 and low at 181.77.

GBP/JPY has made a further attempt at the upside and the top of this recent rally which brings in scope to break onto the 184 handle and fresh yearly highs. In doing so, the upside is wide open and opens up 200.00 as a psychological target. Currently, markets are ignoring improved data in Japan and are fixated on a lower Yen, which after all, is the BoJ’s intention and this is already helping to improve domestic returns on the country’s foreign assets.

Meanwhile, we will turn to the UK this week and the unemployment data for October and then the quarterly inflation report. Markets are expecting the “lower for longer” call from the BoE and rate rises sighted around the middle of 2015 instead of any immediate action. The unemployment report will be closely monitored and any disappointments there could see sterling lose further ground and delay the crosses ambitions for a foothold on the 184 handle for now.

GBP/JPY noteworthy levels

With spot trading at 183.78, we can see next resistance ahead at 184.00, 184.30 (Weekly Classic R1), 186.65 (Weekly Classic R2) and 188.97 (Weekly Classic R3). Support below can be found at 183.68 (Daily Classic R3), 183.60, 183.45 and 183.00 Year High).

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