- Thursday’s BoE MPC vote split kept the GBP bulls on the defensive on Friday.
- Fading safe-haven demand weighed on the JPY and extended some support.
The GBP/JPY cross struggled for a firm direction and oscillated in a narrow trading band, around the key 140.00 psychological mark through the mid-European session.
The cross extended its sideways consolidative price action on Friday and remained well within a broader trading band range held over the past three weeks or so, awaiting fresh catalyst before the next leg of a directional move.
Traders remained on the sideline
Thursday’s 7-2 BoE vote split to keep interest rates unchanged at 0.75% suggested that the UK central bank is poised to change its stance on monetary policy and kept the GBP bulls on the back-foot on the last trading day of the week.
However, fading demand for traditional safe-haven currencies, including the Japanese Yen, despite conflicting trade-related headlines on Thursday, extended some support and helped limit any meaningful downside.
Investors also seemed reluctant to place any aggressive bets amid absent relevant UK political or Brexit news and influential market-moving economic releases, making it prudent to wait for a sustained breakthrough the recent trading range.
Technical levels to watch
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