- GBP/JPY holds in place ahead of UK data, Fed rate hike.
- Japanese holiday leaves Asia session in a lull.
The GBP/JPY pair is sticking very close to the 149.20 level ahead of the European markets, trading very quietly with Japan shuttered to celebrate the Equinox holiday.
The UK sees earnings growth before the Fed shows up
The Sterling sees a hectic macro release ahead of the US Fed's interest rate decision at 18:00 GMT today. UK Average Earnings are expected at 09:30 GMT, along with Claimant Count Change, ILO Unemployment, and Public Sector Net Borrowing. Much of the focus will likely be on Average Earnings, with analysts expecting the figures to come in at 2.6% over the previous reading of 2.5%. Economic growth within the UK has been gaining traction, and with Brexit fears falling away after last week's EU-UK trade announcement, the sunny outlook on the kingdom's economic position can begin to drag the GBP higher.
Today's Japanese holiday is a welcome break to Asia participants, with the Japanese government land scandal sapping risk appetite out of Japan's markets since last week, with Prime Minister Shinzo Abe's public confidence crumbling in polls. A lack of top-tier macro data for Japan this week leaves the Yen to sit as the market's safe haven of choice if the Fed happens to disappoint traders by not delivering a rate hike or a lift in the dot plots for the Fed's anticipated rate increases going forward.
GBP/JPY Levels to consider
The Sterling has climbed steadily against the Yen in March, and the pair is now receiving support from the 200-day SMA at 148.10, while yesterday's low of 148.57 is holding nnearby as intraday support, with resistance at yesterday's high of 149.80 and February's last swing high of 150.93.
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