GBP/JPY Price Analysis: Consolidates around 189.00 amid quiet trading on US holiday

• GBP/JPY steady at 189.14, amid quiet trading due to US President’s Day holiday and sparse data.
• Market eyes BoE Governor Bailey's upcoming speech and key Japanese economic reports.
• Technical analysis indicates GBP/JPY could be on the verge of a breakout, with 189.00-191.00 as crucial range for direction.

The Pound Sterling failed to gain traction against the Japanese Yen in the mid-North American session and is flat at around 189.14, as Wall Street remains closed amid the US President’s Day holiday.

An absent economic docket in the UK and Japan has kept the GBP/JPY within familiar levels. On Tuesday, the calendar will gather momentum with the Bank of England’s (BoE) Governor Andrew Baily's speech. On the Japanese front, the schedule would remain light until Wednesday’s, with the release of the Reuters Tankan Index, and the Balance of Trade for January.

From a technical standpoint, the GBP/JPY is upward biased, though it has remained range-bound within the 189.00-190.00 figure. A breach of that level could open the door to challenging the 191.00 mark.

On the other hand, if sellers move in and drag prices below 189.00, the GBP/JPY could tumble sharply. The first support would be the Tenkan-Sen at 188.12, followed by the February 15 low of 187.92. Once those levels are cleared, the pair could aim towards the Kijun-Sen at 187.34, ahead of the 187.00 mark.

GBP/JPY Price Action – Daily Chart