GBP/JPY saw subdued trading conditions on Thursday, in fitting with the broadly subdued conditions also witness over the past two days. The pair has spent the session trading either side of the 150.00 level and is currently changing hands close to 149.90, down about 0.1% on the day. That puts it roughly at the midpoint of this week’s 149.00-151.00ish range.

Looking ahead to Friday’s session, UK GDP data for October is set for release at 0700GMT. The data will be closely watched by traders, but the main interest they will have is in trying to guage how the BoE will interpret the data. Most likely, even if growth did start off Q4 stronger than expected (markets expected 0.4% MoM growth), this wouldn’t factor into the BoE’s thinking much with regards to whether or not it is going to hike rates at next week’s meeting.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

That said, the firmer RSI conditions and a sustained bounce off triangle support hints at a further run-up towards the pattern’s upper line, near 150.30 by the press time.

Given the 200-HMA level of 150.35 adding strength to the pair’s short-term resistance, GBP/JPY upside past 150.35 becomes difficult, a break of which will quickly fuel the pair towards a descending resistance line from November 28, around 150.75 at the latest. Should the GBP/JPY bulls keep reins past 150.75, odds of witnessing a rally towards November 19 swing low near 152.50 can’t be ruled out.

On the flip side, pullback moves remain elusive beyond the triangle’s support line of 149.60. Also acting as immediate support is the 150.00 threshold.

If at all the GBP/JPY bears break the stated triangle towards the south, the latest low around 149.00 and the yearly trough surrounding 148.50 should lure the bears.

Though, any further downside past 148.50 will be challenged by the likely RSI conditions and December 2019 high close to 147.90.

GBPJPY Forms Daily Resistance Near 149.50

Dec 10 2021

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