The GBP/JPY cross is seen trimming gains and now trades back under 145 handle, having stalled the recovery from three-week lows of 143.32 struck yesterday.
GBP/JPY eyes US open for fresh impetus
The spot is on a retreat, but keeps healthy gains so far this Friday, in response to a sharp rally seen in GBP/USD amid aggressive USD selling across board. Moreover, solid UK retail sales report combined with better-than expected CBI industrial orders data bolster the strength seen in the pound.
The latest leg lower in the cross is mainly driven by a fresh bout of JPY buying, which dragged the USD/JPY pair lower. A retreat in the European stocks appear to have hit the risk-on trades, fuelling demand for the safe-haven yen.
Nothing of note for the cross in the session ahead, and hence, the moves will be driven by the sentiment on the Wall Street and USD dynamics.
Higher side: 145 (round number), 145.32 (daily high), 145.76 (May 4 high)
Lower side: 144.01 (session low), 143.32 (May 18 low), 143 (key support)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.