- GBP/JPY trades near 147.80 on early Friday.
- The pair remains weak on doubts surrounding the UK lawmakers’ ability to tackle Brexit.
- Traders gave less importance to the BOJ meeting prior to Kuroda’s press conference.
GBP/JPY clings to 147.80 ahead of European open on Friday. The Japanese Yen (JPY) strengthened versus the British Pound (GBP) during early-day trading as uncertainties surrounding Brexit favored the safe haven against the GBP. It should also be noted that traders gave less importance to the Bank of Japan’s (BoJ) monetary policy decision as it matched market-wide expectations.
The GBP declined on Thursday despite members of parliament (MPs) supported delaying Brexit deadline from March 29 as Reuters reported that the UK PM Theresa May said she can ask for three months of delay to the EU if parliament supports her deal. The time indicated was considered too short to solve the matter that took more than two years.
During early Friday, the EU leaders were on wires saying that the Britain needs to justify their exit extension request that is acceptable to all 27 member states.
Not everything was negative for the UK as British Attorney General Geoffrey Cox was reported by the UK Telegraph as preparing legal advice that could support the Prime Minister Theresa May on Irish backstop issue.
Alternatively, Bank of Japan (BOJ) announced its monetary policy decision with no change in present policy holding rates at -0.10% while maintaining 10yr JGB yield target at 0.00%. The Japanese central bank cited risks from overseas economies whereas downgrading forecasts for exports and import numbers. Markets gave little importance to the BoJ report as being mostly priced in.
With little on data side available to track, GBP/JPY traders will observe comments from the BOJ Governor Haruhiko Kuroda, in next few hours, during the press conference ahead of focusing on Brexit developments.
GBP/JPY Technical Analysis
While 149.00 can challenge GBP/JPY buyers targeting 150.00, an upward sloping support-line at 147.10/15 may limit the pair’s immediate declines, a break of which can recall 145.50 as a quote.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.