GBP/JPY: On the back foot around 133.00 after UK’s Parliament showdown

GBP/JPY extends previous declines after UK’s political drama, amid volatile risk sentiment.
The House of Commons witnessed a heated discussion between the Tories and the Labour party members.
All eyes on the Rees-Mogg’s “exciting announcement” amid looming uncertainty over the future of the UK PM.

Anil Panchal FXStreet

With the proceedings at the UK’s House of Commons joining global trade/political headlines, the GBP/JPY remains weak while declining to 133.00 during Thursday’s early Asian session.

British Parliament opened for the first time since September 09 after the Supreme Court ruled the prorogation as unlawful. On the commencement, various opposition members demanded the United Kingdom (UK) Prime Minister (PM) Boris Johnson’s resignation but were turned down afterward by the PM. However, this didn’t stop the Tory leader to challenge the opposition Labour party to table a no-confidence motion or let him handle the Brexit. PM Johnson also announced that the UK-EU negotiators are closer to a deal that will have other things that Irish backstop while also refraining from another Brexit extension.

In the end, the House leader Jacob Rees-Mogg announced Thursday’s Parliament business that included adjournment motion for next week for Conservative Party conference and general debate on principles of democracy. The House leader also signaled to offer an “exciting announcement” tomorrow.

Elsewhere, the US President Donald Trump’s press conference and comments by the global leaders from the United Nations General Assembly (UNGA) offered mixed signals during the early hours of the Asian day-start. Among them, optimism surrounding the US-China and US-Japan deal contrasted with the US-Iran tension and doubts over the future of the US President Donald Trump.

With no major data/events up for publishing, headlines concerning the US President Donald Trump’s impeachment, trade, and proceedings at the UK’s House of Commons will be the key to watch.

Technical Analysis

Unless rising back beyond 134.00, the pair can’t avoid visiting 132.20/15 horizontal-line that includes September 05 high and September 12 low. In a case where prices rally beyond 134.00, buyers can again aim for 135.75 and 136.00.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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