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  • The Guppy continues to test into familiar levels as traders struggle to force a new direction in the pair ahead of Japan data.
  • A major rate decision is due from the BoE later this week, which could keep GBP bulls on the sidelines for now.

The GBP/JPY heads into Monday’s trading action facing downside pressure after last week’s action saw the pair struggle to make progress to the high side, and the Sterling is seeing thin action near 145.50 at the outset of the new trading week.

The JPY kicks off the new week with Retail Trade figures due late Sunday at 23:50 GMT, and the y/y Retail Trade figures for June are expected to jump from 0.6% to 1.6%, while Large Retailers’ Sales for June are expected to decline slightly from -0.2% to -0.4%.

On the Sterling side, Monday will be seeing June’s Mortgage Approvals at 08:30 GMT, which are expected to improve to 65.5 thousand after the previous period’s  64.526 thousand reading. The GBP has had a bad go for economic data in recent weeks, causing the Pound to accelerate a decline from July’s highs.

GBP/JPY Levels to watch

As the Guppy continues to fall away from July’s highs at 149.30, the pair sees declining resistance from a falling trendline, as well as a ceiling capping off any upside from 146.50, while a weak floor is seen at last week’s bottom of 145.25.