- Weak Japanese data, financial year-end and FinMin Aso’s comments recently pleased buyers.
- Brexit and the UK data in focus.
- 144.70 acts as a strong upside resistance to watch.
GBP/JPY is a little positive at 144.70 during the early Asian session on Friday. The quote recently registered a spike expectedly on the Japanese Finance Minister’s comments and might also because of the bank fix during the final day of the quarter and fiscal year for Japan. Having witnessed a slew of data from Japan and some comments by FinMin, GBP/JPY traders may now concentrate on Brexit developments and the UK economic data for fresh impulse.
Earlier during Friday, lesser than expected Japanese data triggered the JPY weakness. The retail sales rose less than 1.3% forecast to 0.4% YoY from 0.6% in February whereas industrial production slipped -1.0% versus -0.1% expected and +0.3% prior. It should also be noted that there was no change in the Tokyo Core CPI figure of 1.1% expected and prior.
Adding to the previous rise could be financial year-end for Japan and comments from the Japanese Finance Minister Taro Aso. The FinMin said he is not considering extra economic measures at this time while emphasizing on the need to watch risks from trade issues.
Looking forward, final reading of the UK fourth quarter (Q4) gross domestic product for 2018 and voting on the British Prime Minister Theresa May’s third Brexit proposal in the UK parliament will gain market attention.
While the Q4 2018 GDP is likely to confirm 0.2% initial estimation, PM May could end up witnessing another defeat at the House of Commons as her alliance Democratic Unionist Party (DUP) prepares to vote her deal down.
GBP/JPY Technical Analysis
Despite bouncing off 144.20, the GBP/JPY pair needs to portray a successful trading journey past 50-day and 200-day simple moving average (SMA) confluence around 144.70. With that, the quote can aim for 145.00 and 145.80 while targeting 146.50 during further advances.
Meanwhile, 144.20 and 100-day SMA level of 143.60 seem nearby supports to watch as a break of which can recall 142.60 on the chart.
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