GBP/JPY trying to claw its way back to 152 as risk appetite holds steady

The Sterling has been capitalizing on recent Yen softness, trying to reverse last week's decline.
Mid-tier data for Tuesday leaves markets in a quiet spot unless risk factors spill over again.

Joshua Gibson FXStreet

The GBP/JPY is peaking against the Yen, testing near 151.70 ahead of the European market session.

The Sterling has managed to climb up against the Yen as market sentiment has stepped out from the safe haven Yen, and the pair is on the rise again after declining last week on trade war concerns and unease over the Middle East.

The market has wiped away the risk factors, at least for now, and risk assets are finding themselves better bid.

The Yen will be seeing the Leading Economic Index at 05:00 GMT today, expected to hold steady at 105.8, while the UK session will see Public Sector Net Borrowing, which is forecast to swing up to a 900 million increase (in GBP terms) versus the previous 272 million decline. Increasing public debt could send the GBP into disarray as the latest round of economic figures from the kingdom has been softening against expectations, and the Bank of England (BoE) is already deploying smokescreens on their May rate decision as the central bank is faced with the possibility of holding off on a rate increase, which has been largely priced in.

GBP/JPY Levels to watch

With the pair rebounding from a low of 150.70, resistance rests at the 50.0 Fibo level near 152.30, while the last swing high at the 153.00 major level will be the figure to beat, and a bearish continuation will see support from March's swing highs near 150.50.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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