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  • GBP/JPY steps back after refreshing multi-day top as risk dwindles.
  • UK’s MHRA eyes to restrict AstraZeneca jabs for younger people.
  • Japan’s Labor Cash Earnings recovered, Household Spendings dropped in February.
  • BOJ warns against rate cut, UK M Johnson cautiously unlocks Britain.

GBP/JPY struggles to keep the upside momentum near a 36-month high, recently easing to 153.25, amid the initial hour of Tuesday’s Tokyo open. The pair jumped to the fresh high since April 2018 before a few minutes but consolidation in the market sentiment and downbeat news from the UK seem to have weighed down the quote.

While upbeat catalyst from the US favored the mood on Monday, fears that the UK’s travel guidance will remain cautious dragged GBP/JPY the previous day. Also on the risk-negative side could be the British medicine authority, Medicines and Healthcare products Regulatory Agency’s (MHRA) consideration of a proposal to restrict the use of the Oxford-AstraZeneca covid vaccine in younger people, per Channel 4 news, likely challenges the bulls.

Also on the risk-negative side could be the comments from the Bank of Japan (BOJ) suggesting economic hardships in case of the rate cuts as well as mixed data from Japan.

Japan’s February Labor Cash Earnings recovered from -0.8% prior and -1.5% market consensus of -0.2%. However, Overall Household Spending declined below -2.1% expected and -6.1% previous readouts to -6.6% during the stated month.

It’s worth mentioning that the S&P 500 Futures dwindle around record top whereas the US 10-year Treasury yield eases 2.3 basis points to 1.69% by the press time. Further, Japan’s Nikkei 225 prints mild losses of 0.10% as we write.

Given the lack of major data/events from neither Japan nor the UK, GBP/JPY traders will have to keep their eyes on the risk catalysts for fresh impulse.

Technical analysis

Although the April 2018 peak surrounding 153.85 tests the GBP/JPY buyers, March’s top of 152.55 restricts the pair’s immediate downside.