GBP/JPY down on the day but trying to hold onto 185.50

• The Pound Sterling is in the red against the rallying Yen, but looking to arrest declines.
• The GBP/JPY is headed for its third straight down day.
• BoE policy hearings, Japanese holiday mar the midweek outlook.

The GBP/JPY is seeing declines in Monday trading as the Japanese Yen (JPY) sees a reprieve from long-running selling pressure. The pair initially tumbled to an intraday low of 184.63 to kick off the trading and is now looking to pare back losses, trading back into the 185.50 level.

The Pound Sterling (GBP) is a mixed bag in the new trading week, seeing lopsided performance against the other major currencies, but giving up the most ground to the rebounding Yen, down around 0.65% for Monday.

BoE's Bailey: we are on track to bring inflation down to target

Bank of England (BoE) Governor Andrew Bailey gave a speech late Monday discussing sticky food price inflation plaguing the UK's domestic economy, and Pound Sterling traders will be looking ahead to the BoE's latest Monetary Policy Report Hearings due on Wedneday.

Japanese markets will be shuttered on Wednesday in observance of Labor Thanksgiving Day on Wednesday, leaving Yen volumes thinner than usual.

GBP/JPY Technical Outlook

The GBP/JPY is trading back from eight-year highs near 188.00, declining from last week's peak for a third straight day. The pair is getting dragged back towards the 50-day Simple Moving Average (SMA) near 183.20.

The long-term trend for the GBP/JPY remains firmly bullish on the charts, with price action trading well above the 200-day SMA at the 176.00 handle.

A continued decline will see sellers challenging the last swing low into the 180.00 major handle, while bidders are going to have their work cut out for them trying to retake 188.00.

GBP/JPY Daily Chart