GBP/JPY clings to 200-day SMA ahead of BOJ

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  • Doubts over the UK PM May’s future leadership and Brexit uncertainty gain attention ahead of the BOJ meeting.
  • 200-day SMA continues to become crucial levels for immediate direction.

GBP/JPY trades near 144.60 ahead of the bank of Japan’s (BOJ) monetary policy meeting scheduled on early Thursday. The quote remained mostly unchanged on Wednesday but is on a back-foot off-late due to Brexit pessimism.

Despite senior conservatives give some relief to the UK PM Theresa May after her position was to be challenged recently, the BBC reports that there are many Tories who still wished to call an emergency general meeting to oust the PM. The same is likely weighing on the British Pound (GBP) recently.

On the Brexit front, PM May is likely to ask the parliament members (MPs) to vote on the final departure proposal sometimes during next week, the Sky News conveys.

Looking at the Japanese front, JPY remained a bit positive ahead of the BOJ meeting outcome. The policymakers aren’t expected to announce a change in the present measures. 

However, the quarterly outlook report may end up revising the growth and inflation forecasts down considering repeated miss by both the headline data.

Also important will be the BOJ Governor Haruhiko Kuroda’s press conference after the rate statement.

GBP/JPY Technical Analysis

Unless declining below 144.55 mark comprising 200-day simple moving average (SMA), the GBP/JPY pair can continue aiming 145.20 and then to 50-day SMA level of 145.85.

On the flipside, 144.00 and 143.80/70 area comprising 100-day SMA and multiple lows since February 22 seems crucial to observe.

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