GBP/JPY surrenders early gains to 6-month tops, retreats further below 141.00 mark
|- GBP/JPY failed to capitalize on its strong intraday positive move to the highest level since February.
- News that Japan’s PM Shinzo Abe is stepping down prompted some aggressive long-unwinding trade.
- The focus now shifts to Abe’s press conference amid absent relevant market-moving economic data.
The GBP/JPY cross extended its sharp intraday pullback from six-month tops and retreated further below the 141.00 mark, back closer to the lower end of its daily trading range.
The cross added to this week's gains and continued scaling higher through the early part of the trading action on the last trading day of the week. The strong positive momentum was supported by the bid tone surrounding the British pound and got an additional boost from the upbeat market mood, which tends to undermine the Japanese yen's safe-haven demand.
The GBP/JPY cross shot to the highest level since late February, albeit lost momentum near the 141.60 region on reports that Japan's Prime Minister Shinzo Abe is stepping down due to ill health. The news triggered a sharp market reaction and provided a strong lift to the Japanese yen, which, in turn, was seen as one of the key factors behind the pair's sharp pullback.
The cross was last seen hovering near the 140.80-75 region as market participants now look forward to Abe's press conference at 08:00 GMT for a fresh impetus. Apart from this, the broader market risk sentiment will influence the JPY price dynamics and produce some meaningful trading opportunities amid absent relevant market moving economic releases from the UK.
Technical levels to watch
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