GBP/JPY clings to 21-day EMA as trade/political news confront Brexit jitters
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GBP/JPY clings to 21-day EMA as trade/political news confront Brexit jitters

  • GBP/JPY shrugs off Brexit-negative story as traders focus more on the US-China trade headlines amid early Asian session.
  • The UK’s Parliament drama continues with MPs demanding swift result from the PM.
  • US-China talks will resume on October 10-11 in Washington.

GBP/JPY pays little heed to the UK PM’s struggle as risk-tone gets mild support from trade-positive news amid a lack of data/events. The quote seesaws near 21-day exponential moving average (EMA) level around 132.90 during initial Asian morning on Friday.

Recent comments from the United Kingdom’s (UK) Prime Minister (PM) Boris Johnson state that the Tories are far away from the EU as far as the Brexit deal is concerned, which in turn could have supported The Sun’s report mentioning that PM Johnson witnesses additional push from the Members of the Parliament (MPs) to soften on Brexit demands to the EU.

On the other hand, CNBC relied on sources to convey that the US-China trade talks will resume in Washington on October 10-11.

However, markets show little reaction amid a lack of major data/events while trying to gauge major headlines, concerning the US President Donald Trump’s impeachment.

With this, the US 10-year treasury yield stays unchanged to 1.7% whereas the S&P 500 also follows the suit.

Traders may now focus on the EU-UK Brexit negotiator’s meeting for fresh impulse while trade/political headlines could keep offering background music amid an absence of major data/event.

Technical Analysis

The quote needs to close below 50-day EMA level around 132.70 on a daily closing basis in order to please bears with 132.00 and 131.80/70 support-zone including August high and early-month low. Alternatively, 134.00, 134.70 and 135.75 are likely nearby upside barriers to watch.

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