GBP/JPY dips back to low 154.00s, still nursing tentative recovery from earlier weekly lows

GBP/JPY held within a 154.00-155.00ish range on Friday, as the pair continued to nurse a recovery from its earlier weekly dip to sub-153.00 levels. The pair, which was as much as 0.75% down at the start of the week, now trades with on the week gains of about 0.15% in the 154.20s. A late yen bid on Friday that has propelled the safe-haven currency to the top of the G10 performance table has seen the pair pull back from earlier session highs closer to 155.00, but the pair continues to trade broadly flat on the day and within recent ranges.

Looking ahead to next week, technicians will be keeping an eye on support in the 153.00 area where not only this week’s lows reside, but also the 200-day moving average. If another broad downturn in risk appetite (like what happened last week) sends the pair back lower again, a break below this area would open the door to a test of the key 152.40/50 balance area that has provided both support and resistance since last September. Conversely, to the upside, traders should keep an eye on notable resistance in the 155.50 area. The Bank of England policy announcement on Thursday will be the major economic event of the week.