GBP/JPY sees additional losses for Friday, ends the week near recent lows at 181.60
|- The GBP/JPY extended losses into Friday trading, tapping into 181.27 and ending the week on the low side.
- The Pound Sterling rose to 183.82 in the mid-week, but bad data buds and souring market sentiment sent the Guppy back into the week's lows.
- Coming up next week: UK labor and wages figures on Tuesday, UK CPI on Wednesday.
The GBP/JPY chalked in another red bar to settle Friday, bringing the pair back into range of the week's lows set on Monday near 181.25, and the closing bell finds the Guppy trading into 181.60.
The pair spent the first half of the trading week on the climb, tapping into four-week highs at 183.82 before market turned broadly risk-off and sent the Pound Sterling (GBP) sharply lower against the Yen (JPY), sending the GBP/JPY down over 1% to end the trading week in the red, down about 60 pips.
UK economic indicators broadly came in red for Thursday, with Manufacturing Production for August declining 0.8%, down from the forecast -0.4% and seeing a mild rebound from the previous -1.2%, which was revised sharply down from -0.8%.
Coming up next week will be a quiet Monday on the Guppy's calendar, with Tuesday opening up with a speech from the Bank of England's (BoE) Huw Pill, followed by labor and wage data, with the UK's Employment Change for August forecast to moderate from -207K to -195K, and Average Earnings are expected to hold steady at 7.8% for the quarter into August.
After that will be the big read for the week on the Pound Sterling side with UK Consumer Price Index (CPI) inflation figures on Wednesday, and investors will be looking for CPI inflation for September to tick upwards slightly from 0.4% to 0.3% as inflation pressures continue to weigh on the United Kingdom.
GBP/JPY Technical Outlook
The GBP/JPY slipped below the 200-hour Simple Moving Average (SMA) in Friday's trading, declining from the day's early high of 182.94.
On the daily candlesticks the GBP/JPY remains well-bid, albeit with some bearish cracks starting to show; the 50-day SMA is capping off near-term price action from 183.40.
The 180.00 handle has been holding steady as a technical floor for the Guppy, but this week's turnaround from just south of 184.00 could see the GBP/JPY facing a bearish extension if bidders aren't able to scrape together enough confidence to pull the pair back up the charts.
GBP/JPY Daily Chart
GBP/JPY Technical Levels
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