- The Sterling is seeing renewed weakness against the Yen in Friday’s Asia trading session.
- A thin calendar for the week has left the pair at the mercy of market sentiment, but next week promising a more rounded-out showing from both the BoE and the BoJ.
The GBP/JPY pairing touched into a new three-week low in Asia trading as the Sterling continues to find weakness against the safe-haven Yen, dropping into the 145.40 region in thin markets.
Brexit concerns continue to drag on the Pound, with the European Union’s head Brexit negotiator formally rejecting the latest proposal from Prime Minister Theresa May, a proposal that saw much quarreling and in-fighting within the UK’s parliament, and the UK is heading back to square one once again with no exit plan in sight.
Next week will also be bringing a rate decision from the Bank of England (BoE), and markets are watching for a widely-expected rate hike of 25 bps, though the odds of a rate hike are being thrown into question after a steady run of disappointing economic data for the Sterling, and tensions are sure to keep on the high side in the run-up to next Thursday’s rate call.
GBP/JPY levels to watch
The GBP has been seeing steady declines against the JPY for the past two weeks, slipping from a high of 149.30, and this week’s swing high of 146.50 will mark in another lower high for the pair if bears continue to drag the pair lower; bulls will be looking to keep the pair afloat from the last two swing low points hit in June, from 144.35 and 143.75 respectively.
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