GBP/JPY: Buyers and sellers jostle amid trade/political pessimism

• GBP/JPY struggles for catalysts while staying under pressure for the fourth day in a row.
• Tories are alleged to have set up a fake Labour manifesto website, their tax plans and comments from a key diplomat were also criticized.
• Japan CPI and preliminary activity numbers from the UK/Japan will be in the spotlight.

GBP/JPY carries the previous three-day trend forward while staying negative during the Asian session on Friday. However, the moves are compressed with mixed signals, also ahead of key data, while the quote seesaws near 140.20.

Looking at the political framework in the United Kingdom (UK), one can say the Tories have been under pressure off-late. While allegations over their factcheck handle still being alive, the latest row, as signaled by The Independent, claims that the  Conservatives  have  set up a  website that purports to contain  the opposition Labour Party’s manifesto, in a bid to trick voters looking for the document. Additionally, the Tory tax plan is criticized on the grounds of favoring the rich while comments from the home secretary Priti Patel, saying that the government was “not to blame” for poverty, were cited by the Labours as another example of the “cruelty” of the Tory government.

Even so, the polls keep favoring the Conservatives as the clear winner of the December election. The latest among them from Ipsos MORI shows nearly a 16 point lead of the Prime Minister (PM) Boris Johnson’s party over the Labours.

Elsewhere, the market sentiment is compressed by the trade tussle between the United States (US) and China. Although the latest signs are that the US may delay December 15 tariff hike, Beijing awaits US President Donald Trump’s action on the Hong Kong Bill for the “fight and talk”.

As a result, the S&P 500 Futures stay around 3,100 while the US 10-year Treasury yields take rounds to 1.78%.

Traders will now keep an eye over Japan’s October month Consumer Price Index (CPI) numbers and Jibun Bank Manufacturing PMI before looking towards the UK’s Manufacturing and Services PMI numbers.

Technical Analysis

While the 21-day Exponential Moving Average (EMA) level of 139.70 acts as immediate support, pair’s upside is restricted by the recent high near 141.60.