GBP/JPY: Guppy under pressure ahead of May’s speech as Japan’s inflation ticks higher

The UK Prime Minister Theresa May to deliver Post-Brexit vision speech.
The Bank of Japan Governor Kuroda said easy monetary policy won’t be revisited in the fiscal year 2018.

FXStreet Team FXStreet

The GBP/JPY is trading down 0.4% at around 145.70 on Brexit-related uncertainties and the Japanese Yen surging as the inflation in Japan ticks up.

Set of inflation numbers from Japan saw Tokyo core CPI excluding fresh food rising 0.9% over the year in February while overhead inflation rose 1.4% in Ku area of Tokyo. At the same time, Japanese unemployment unexpectedly fell to 2.4% in January.

Mr. Kuroda, the Bank of Japan Governor, crossed the wires overnight saying that the Bank of Japan will not be considering policy exit during the fiscal year 2018. He went further confirming the BoJ will continue to expand monetary base until inflation stabilizes.

The UK Prime Minister Theresa May will be delivering her vision for a post-Brexit relationship later on Friday. The Bank of England governor Mark Carney is also scheduled to speak at 10.00 GMT on the topic of cryptocurrencies.

The Pound is under pressure with Brexit uncertainties and the negotiations on the divorce treaty.

The UK construction PMI for February is scheduled on Friday at 09.30 GMT, it is expected to increase to 50.5 versus 50.2 points in January.

Technically the GBP/JPY has broken below it 200 simple moving average, which is a bearish signal. The next support is seen at 144.30 which is the 38.2% Fibonacci retracement from the November 2017-February 2018 bull run. Further down 140.50 should provide some support as it is the 50% Fibonacci retracement from the November 2017-February 2018 bull run. To the upside, the 148.00 figure along with the 200-period simple moving average is the next key resistance. Further up, 150.50 should provide some resistance with the 100-period simple moving average.

GBP/JPY daily chart

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FXStreet Team

FXStreet

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