- Broader market sentiment continues to hamper riskier assets against the safe-haven Yen.
- The early week has been a quiet showing on the economic calendar, but both the GBP and the JPY have key events coming up in the coming days.
The GBP/JPY pair is continuing the early week’s churn, touching down into 145.10 in the Asia session as traders grapple with off-balance market sentiment.
The Sterling has been in a rough range against the Yen this week, with Monday’s whips marking in a high and low for the week that has yet to break as the action tightens up amidst trade tensions hobbling traders’ efforts to bring risk appetite back into the broader markets.
Wednesday could be the day that the Guppy breaks out of its current constrained pattern, with the Bank of England (BoE) due to drop its latest Financial Stability Report, with an accompanying speech by the BoE’s Mark Carney, happening at 08:30 GMT.
On the Yen side, Wednesday will be delivering Retail Sales figures late at 23:50 GMT, although Thursday’s reading of the Tokyo CPI indicator will be the JPY event that draws traders in, with the Tokyo CPI dropping at 23:30 GMT, and the y/y core CPI is expected to tick upwards from 0.5% to 0.6%.
GBP/JPY levels to watch
With the pair trapped in a tightening range between Monday’s high near 146.20 and the low near 144.70, immediate resistance is parked at today’s high of 146.65 with support resting at yesterday’s low just beneath the 145.00 handle. A bull run for the pair will be looking to challenge the month’s high at 148.10 while a continued decline will see May’s lows near 143.85.
Share
