- GBP/JPY remains below 21-day EMA as Japan’s data dump fails to please sellers.
- Political drama at the United Kingdom (UK) keeps the British Pound (GBP) under pressure ahead of the key next week.
GBP/JPY registers modest changes after UK’s GfK Consumer Confidence and Japan’s data dump while trading near 129.80 during the early Asian session on Friday.
Following a downbeat release of August month’s the UK GfK Consumer Confidence, -14 versus -12 expected, Japan’s Tokyo Consumer Price Index (CPI), Unemployment Rate, Industrial Production, and Retail Trade flashed mixed signals.
While better than expected 0.3% growth of July month Industrial Production of 1.3% and upbeat Unemployment Rate of 2.2% against 2.4% forecast portrayed the strength of the export-oriented economy, a match of 0.7% forecast by the August month Tokyo Core CPI (YoY) and downbeat figures of Retail Trade, -2.0% compared to -0.8% expected seemed negative for prices.
Despite witnessing a bit of risk-on, mainly due to China’s readiness to wait for September talks before practicing latest tariffs on the US goods, the pair remained under pressure on Thursday as the UK policymakers raged over the Prime Minister (PM) Boris Johnson’s ability to prorogue the Parliaments.
Even if major market attention will be given to the trade/political news amid a lack of major data/events, Japan’s Housing Starts and the UK’s credit data will offer intermediate trade opportunities.
Technical Analysis
A daily closing beyond 130.00 comprising 21-day exponential moving average (EMA) becomes a trigger for the GBP/JPY pair’s run-up to the monthly high of 130.71 whereas a rising trend-line since August 12, at 128.84 now, acts as near-term key support.
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