The U.K. has a data dump on tap including its Q3 preliminary GDP read.
Will GBP/JPY’s reaction provide trading opportunities today?
Before I show you a setup that I’m looking at, check out the top headlines that Asian session traders had priced in:

- Migration continues to dry up in New Zealand
- Japan’s machinery orders fall, clouding outlook for capital spending recovery
- Japan’s wholesale prices drop 2.1% in Oct. due to falling oil costs
- Melbourne Institute: Reported pay growth is negative in Nov, consumers more optimistic
- UK house price growth hits 21-year high, weaker 2021 likely – RICS
- China slaps ban on Victorian logging imports
- RBNZ’s Hawkesby: sticking to plan of keeping rates unchanged until March 2021 but operationally ready for negative rates by year end
- Asian shares rise on vaccine bets but analysts urge caution
- Biden win boosts Asia FX sentiment; bullish bets on rupiah at over six-year high: Reuters poll
- Australia dollar fails at chart resistance, NZ$ pauses at 19-month highs
- UK tries to reassure business leaders over Brexit with new task force
Upcoming Potential Catalysts on the Economic Calendar:
- U.K. preliminary GDP at 7:00 am GMT
- U.K. industrial production at 7:00 am GMT
- BOE Governor Bailey to make a speech at 8:00 am GMT
- Eurozone industrial production at 10:00 am GMT
- U.S. CPI at 1:30 pm GMT
What to Watch: GBP/JPY

In a few hours, the U.K. will print its preliminary GDP reading for Q3 2020. Oh, and we’ll also see manufacturing, industrial, and trade numbers!
Word around is that the economy has recovered by 15.5% after dropping by 19.8% in Q2. A strong reading isn’t likely to support the pound, though, especially since the numbers don’t reflect the latest lockdown measures in Britain.Unless we see much stronger-than-expected data releases from the U.K., then the pound will likely see some retracement against the yen. The 137.50 handle is a good level to watch out for as it lines up with a 50% Fib retracement and a previous resistance on the 4-hour time frame.
If traders maintain their risk-on vibes in the next trading sessions, however, or if they feel bullish over the new Brexit task force, then GBP/JPY could find support around the 138.75 levels and make new weekly highs.
Keep in mind that GBP/JPY tends to move by 100 pips or so on Thursdays. Make sure to factor that in when you place your entry and exit targets!