GBP/JPY looking to climb back towards 150.00 in eager Monday markets
- Yen takes a step back as Asia markets open to positive, if muddled, US-China relations improvements.
- Sterling sees a quiet Monday session with little data ahead of Tuesday's inflation hearings.
The GBP/JPY is propping up in early Monday action, trading towards 149.50 after bouncing from Friday's bottom at 149.10.
The Yen walked backwards slightly at the market's open for the week following Sunday headlines that the US and China are cooling off their ongoing trade spat, with both countries apparently agreeing to hold off on any further tariffs, and China ending its investigation into illegal US dumping of sorghum in Chinese markets. There is some discrepancy between statements by the US Trade Rep Lighthizer and US Treasury Secretary Steven Mnuchin about what the cooldown involves, and market reaction to the news quickly froze.
Japan's Merchandise Trade Balance contracted to ¥626 billion in April from the previous month's ¥797.3 billion, but still better than the expected ¥405.6 billion.
Monday delivers little data for the Sterling, but Tuesday sees the Inflation Report hearings beginning at 09:00 GMT.
GBP/JPY levels to watch
The pair is finding support at the 200-day SMA near 149.25, and if the bullish correction is able to maintain its legs, April's swing high near 152.50 will pose a challenge for overeager bulls, and a bearish correction will need to clear May's low near 147.00 before pricing in fresh shortside.
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.
