GBP/JPY heading towards 145.50 as risk appetite hesitates

Sterling's push against the Yen is running into trouble in the Asian session.
demand for the safe haven Yen is keeping the pair from staging a forcible recovery.

Joshua Gibson FXStreet

The GBP/JPY is edging lower in Asia trading, testing below 145.70.

The UK's BRC Shop Price Index for June came in at -0.5%, encouraging the Sterling to continue drifting to the bearish side through the overnight session as the GBP gave up yesterday's high of 146.38. The GBP continues to see long action capped against the safe haven JPY, and the pair's bullish momentum appears to have stalled out after rebounding from June's low of 143.77.

GBP traders will be seeing another release today, with the Markit Services PMI for June coming in at 08:30 GMT. The forecast is calling for the indicator to remain flat at 54, and traders will be hoping for a continuation of the week's upward surprises to the PMI figures that have been steadily coming out.

GBP/JPY levels to watch

Yesterday's slump away from recent highs puts the pair on a sideways move, and the current barriers rest on either side of current price action at 146.40 and 145.30. A continued sell-off is looking likely as the safe haven Yen remains a popular choice in broader markets, and a tumble below current support will see the action slip into last week's lows near 143.75.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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