GBP/JPY pulls back to familiar territory near 182.00 following Tuesday's UK PMI miss

• The GBP/JPY is seeing a rapid decline back into near-term consolidation after a miss for the UK Composite PMI.
• The Guppy is down 0.9% top-to-bottom on the day so far.
•  Tuesday's downside push sees the GBP/JPY trading back into familiar territory.

The GBP/JPY is down around 150 pips from Tuesday's early peak at 183.75, sliding 0.9% on the day as the Pound Sterling (GBP) pares away all of Monday's gains for the early week against the Japanese Yen (JPY).

The GBP has waffled its market stance after a miss for UK Purchasing Manager Index (PMI) figures on Tuesday.

UK Preliminary Services PMI inches lower to 49.2 in October vs. 49.5 expected

The UK's PMI reading on Tuesday exposed the Pound Sterling to the downside after missing expectations in the headline figure, with the Composite PMI printing at 48.6 for October, a minor improvement from September's 48.5 but missing Wall Street's forecast 48.8.

The UK Manufacturing PMI beat expectations slightly, coming in at 45.2 against the expected 45, improving markedly over the previous month's 44.3, but the Services component of the UK PMI reading failed to spark confidence after an unexpected downtick from 49.3 to 49.2, missing the expected increase into 49.5.

With the GBP floundering following the missed forward-looking growth measure, GGBP/JPY traders will be looking ahead to Japan's Tokyo Consumer Price Index (CPI) inflation reading due early in the Asia Friday market session.

The annualized Tokyo CPI last came in at 2.8% for September, and markets are forecasting the Tokyo Core CPI (CPI inflation minus volatile fresh food prices) to hold steady at 2.5%; a miss for the indicator will make it increasingly difficult for the Bank of Japan (BoJ) to look ahead to ending their negative rate regime with inflation broadly expected to decline below the Japanese central bank's lower target band of 2%.

GBP/JPY Technical Outlook

The Pound Sterling has shed 0.9% against the Yen on Tuesday, tumbling from an eight-day high of 183.75 as the GBP/JPY starts to treat the 50-day Simple Moving Average (SMA) as a price ceiling on the charts.

As the daily candlesticks continue to churn, chances for a firm bullish break are evaporating, and the Guppy is looking poised for possible declines back towards the 200-day SMA currently rising into the 174.00 handle.

A topside break will need to reclaim the 186.00 psychological level before gearing up for another run at 2023's highs beyond 186.77 set back in August.

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