GBP/JPY: Sellers concentrate on Brexit drama ahead of UK retail sales, BOE

  • Brexit developments weigh on trade sentiment, British retail sales and BOE meeting gain market focus amid a holiday in Japan.
  • Near-term support-line and 200-day SMA appear on sellers’ radar after recent weakness.

The GBP/JPY pair trades near 146.15 while heading into European open on Thursday. The pair dropped heavily during late-Wednesday and carried the weakness overnight as developments surrounding Brexit continued magnifying uncertain times ahead for the UK’s departure from the EU. While Tokyo markets are off for Vernal Equinox Day, British retail sales and Bank of England (BoE) monetary policy meeting will be closely followed for fresh impulse.

Headlines ranging from speculations that the French PM would use the veto to stop Brexit deadline extension to opposition Labour party leader, Jeremy Corbyn’s, walk out of the cross-party meeting continued fuelling the British Pound (GBP) moves on Wednesday. Among them, report that the UK PM Theresa May has submitted a request to the EU Council President Donald Tusk for three month Brexit extension from March 29 and Tusk’s comments favoring short extension based on the UK’s House of Common’s approval gained major attention.

Even if no-deal Brexit is rejected and the British lawmakers favored deadline extension from March 29, it all depends upon the EU summit as a rejection of one EU member with veto could push the UK out of the region on time. Hence, uncertainties surrounding Brexit kept dragging the GBP downwards.

Investors may now concentrate on February month retail sales figures from the UK in addition to the BOE monetary policy meeting report. The retail sales figures are likely to add further worries on to the Pound buyers as monthly growth is expected to shrink by -0.4% versus +1.0% earlier while YoY increase might also soften to 3.3% from 4.2%.

The BOE Isn’t expected to alter any monetary policy actions that offer interest rate at 0.75% and the Quantitative Easing program at £435 billion. Though, minutes of the latest meet will be closely observed for clues concerning how Brexit weighs on the central bank’s future policy guidance.

GBP/JPY Technical Analysis

Eleven-week old ascending trendline at 145.00 next to 200-day simple moving average (SMA) figure of 144.70 become important supports for the GBP/JPY pair.

On the contrary, 148.30, six-month-long resistance-line at 148.80 and 149.00 could keep challenging the buyers ahead of pleasing them with 150.00.

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 assets. 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 Open Markets 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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD falls below 1.1250 as US retail sales beat expectations

EUR/USD is trading below 1.1250, extending its slide. US retail sales beat expectations with the control group rising by 0.5% in May on top of upward revisions. US-Sino trade tensions are in play.


GBP/USD falls towards 1.2600 after US retail sales

GBP/USD is trading closer to 1.2600, around the weekly lows. US retail sales beat expectations and trade tensions also boost the USD. The UK is bracing for Boris Johnson to become PM. US consumer confidence is next.


USD/JPY climbs to mid-108s as 10-year US T-bond yield erases losses

Today's upbeat macroeconomic data releases from the United States provided a boost to the greenback and allowed the USD/JPY pair to advance to a session top of 108.50.


Gold surges through $1350 level, highest since April 2018

Gold caught some aggressive bids in the last hour and surged to the highest level since April 2018, around the $1358 region.

Gold News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Alone in the dark of outer space...heading to the Moon

It is almost usual practice of the Crypto market that technical extremes occur at the end of the working week – setting the stage for action over the weekend.

Read more