GBP/JPY cautiously rose for Wednesday, testing 181.00 region

• GBP/JPY is floating higher, albeit cautiously, after an unconfirmed BoJ FX intervention on Tuesday.
• The Pound Sterling has struggled against the Yen lately, down 3% from recent highs.
• The BoJ has so far refused to confirm or deny operations to defend the JPY in open markets.

The GBP/JPY caught a mild lift in Wednesday trading, reaching an intraday peak of 181.26, extending the rebound from Tuesday's bottom of 178.08.

The Japanese Yen (JPY) rapidly appreciated on Tuesday, with the GBP/JPY plummeting around 300 pips within a matter of seconds, and it remains unconfirmed that the Bank of Japan (BoJ) intervened in FX markets to defend the Yen.

With the economic calendar devoid of any meaningful data for either the Pound Sterling (GBP) or the Yen, broader market sentiment is set to drive the pair around the charts heading through the back half of the trading week.

Thursday will bring Japanese Labor Cash Earnings, with the annualized figure for August last printing at 1.3%.

GBP/JPY technical outlook

Hourly candles have the Guppy trading flat for Wednesday, and the pair is up 0.33% or 60 pips for the day. Intraday action is largely trading back into a familiar range prior to the assumed BoJ intervention, and prices remain capped below the 200-hour Simple Moving Average (SMA) currently resting near 181.50.

Daily candlesticks have the GBP/JPY pinned into the 100-day SMA, with the 180.00 major psychological handle acting as a floor for technical momentum. The Guppy is up 14% for the year, trading over 2,200 pips above 2023's opening bids.