- The Sterling is bumping higher on improving Brexit headlines.
- Monday sees constrained market volumes, especially in the early session.
The GBP/JPY is trading into 149.50 at the week’s outset as buyers make an early push for the 150.00 major handle, though Monday’s early action could easily be a trap with Japan dark for the long weekend.
Brexit headlines are once again leaning towards the hopeful side of things, encouraging bidders to pick up the GBP once again, and the Guppy is pushing into five-month highs. The EU is set to deliver their version of a trade deal proposal to UK Prime Minister Theresa May, and though the trade deal contains very little of the PM’s initial Chequers proposals, the real challenge will be to convince saber-rattling Brexiteers within the UK’s own parliament to accept a deal being extended by the EU.
Monday starts off nice and easy on the economic calendar, and the UK’s only data reading for today will be the BRC’s Annualized Like-For-Like Retail Sales for September at 23:01 GMT, which last showed a sluggish reading of 0.2%.
GBP/JPY levels to watch
Buyers will have to watch out for a second rejection from the 150.00 major technical level as the pair continues to spiral around the 200-day EMA at 148.15. Continued support comes from the 50-day EMA at 146.35, while buyers will be looking out for extended resistance from last month’s peak at 149.70.
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