GBP/JPY: Traders weigh Brexit pessimism amid static BoJ policy around 148.00

• GBP/JPY trades near 147.80 on early Friday.
• The pair remains weak on doubts surrounding the UK lawmakers’ ability to tackle Brexit.
• Traders gave less importance to the BoJ meeting prior to Kuroda’s press conference.

GBP/JPY clings to 147.80 ahead of European open on Friday. The Japanese Yen (JPY) strengthened versus the British Pound (GBP) during early-day trading as uncertainties surrounding Brexit favored the safe haven against the GBP. It should also be noted that traders gave less importance to the Bank of Japan’s (BoJ) monetary policy decision as it matched market-wide expectations.

The GBP declined on Thursday despite members of parliament (MPs) supported delaying Brexit deadline from March 29 as Reuters reported that the UK PM Theresa May said she can ask for three months of delay to the EU if parliament supports her deal. The time indicated was considered too short to solve the matter that took more than two years.

During early Friday, the EU leaders were on wires saying that the Britain needs to justify their exit extension request that is acceptable to all 27 member states.

Not everything was negative for the UK as British Attorney General Geoffrey Cox was reported by the UK Telegraph as preparing legal advice that could support the Prime Minister Theresa May on Irish backstop issue.

Alternatively, Bank of Japan (BoJ) announced its monetary policy decision with no change in present policy holding rates at -0.10% while maintaining 10yr JGB yield target at 0.00%. The Japanese central bank cited risks from overseas economies whereas downgrading forecasts for exports and import numbers. Markets gave little importance to the BoJ report as being mostly priced in.

With little on data side available to track, GBP/JPY traders will observe comments from the BoJ Governor Haruhiko Kuroda, in next few hours, during the press conference ahead of focusing on Brexit developments.

GBP/JPY Technical Analysis

While 149.00 can challenge GBP/JPY buyers targeting 150.00, an upward sloping support-line at 147.10/15 may limit the pair’s immediate declines, a break of which can recall 145.50 as a quote.