- Sterling looking to regain bullish stance after sliding on Thursday amid hesitating risk appetite.
- Japan economic indicators continue to slide, with GDP figures missing the mark.
The GBP/JPY is bumping higher in early Asia trading, trading near 147.40.
The Sterling experienced a rough Thursday session, spiking several times in a rough chop but ultimately ending the day lower as risk sentiment continues to dry up ahead of the G7 summit.
Japanese GDP figures came in worse than expected, with the q/q numbers for the first quarter coming in at -0.6%, in-line with the previous reading and failing to recover to the forecast of -0.4%.
Friday has little data remaining for the Sterling and the Yen on the economic calendar, and focus is now shifting to the upcoming G7 summit meeting, where US President Donald Trump is expected to face a gathering of angry allies and trade partners who are increasingly unwilling to work with the US to resolve ongoing trade issues. Traders are bracing for statements from world leaders as the summit gets underway, and market participants are expecting Trump to leave the gathering earlier than the rest of the G7 leaders.
GBP/JPY levels to watch
The pair fell back into the 147.00 handle on Thursday, but the current action is seeing some lift and bulls will be trying to push back into the week’s highs near 148.10, while a continuation of Thursday’s slide will see the GBP/JPY falling into May’s low of 145.30 as Daily candles continue to mark out a very large descending channel, with resistance capping off gains from the 50-day EMA at 148.25.
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