Image Source: Pixabay

• The GBP/JPY currency pair saw a bounce from near-term lows at 181.30 to settle out the trading week in familiar consolidation.
• Market sentiment witnessed a step back from safe havens, but a lack of momentum in risk assets limited upside potential.
• UK Retail Sales data missed expectations, which capped off recovery gains for the pair.

The GBP/JPY currency pair appeared set to finish the trading week on the north side of the 182.00 area, as late Friday price action shifted around at the 182.20 level after a broad-market sentiment rally saw safe haven assets take a step back. This pushed the Japanese yen down, which allowed the British pound to recover some ground.

UK Retail Sales flopped on release, printing at -0.9% for September compared to August's 0.4% reading, and completely missing the forecast of -0.3%. This sent the pound down to 181.30 against the yen.

Early Friday saw the Japanese National Consumer Price Index (CPI) for September hit an annualized 3% versus August's 3.2% reading for the same period. However, the market's reaction was limited as the national inflation figure often gets overshadowed by the Tokyo CPI reading, which came in late September.

GBP/JPY Technical Outlook

Momentum continued to bleed out of the GBP/JPY currency pair on its daily candlesticks, with the pair trading close or into the 50-day Simple Moving Average (SMA) near 183.30 since it first declined into the 183.00 handle in September. Near-term consolidation has seen the pair trading into previous-day levels for most of October.

The GBP/JPY pair's constraining pattern left the pair adrift at the top end of the year's highs, and the pound has remained up over 17% from 2023's bottom bids set back in January near 155.35.

With bullish opportunities quickly evaporating in recent days, any strength from the yen will likely send the pair back down the charts in short order, with long-term technical support sitting at the 200-day SMA parked just below 174.00.

GBP/JPY Daily Chart

(Click on image to enlarge)

GBP/JPY Technical Levels

More By This Author:

Forex Today: A Busy Week Ahead, Between Data And Geopolitics
EUR/JPY Price Analysis: Uptrend Stalled At 159.00, As Buyers Targeted 159.76 High
Gold Price Forecast: XAU/USD Hit A Five-Month Peak, Dipped To $1980s On Safe-Haven Flows