GBP/JPY sliding early in Tokyo, 149.00 handle in sight
- GBP/JPY Tumbles in Tokyo on Japan's Motegi's words.
- Downside limited as Yen struggles to accelerate gains.
The GBP/JPY pair is sinking at the outset of Tokyo trading, testing 149.20 as of writing.
The Sterling continues to swing aggressively in trade against the Yen and has consolidated in a wide range for the past two weeks.
The improving economic outlook for the UK is bolstering the GBP in global markets, yet Brexit concerns continue to weigh heavily when the bulls take a breather. Prime Minister Theresa May is slated to publicly announce her outline for a Brexit plan this Friday, and markets are beginning to unnerve as hopes for a 'soft Brexit' scenario are still very much up in the air. Hardline Brexiteers within PM May's ruling Conservative party are decrying May's continued concessions to EU leaders in Brussels, accusing the Prime Minister of sacrificing the UK's sovereignty and hampering the kingdom's ability to negotiate trade deals once out of the European Union.
On the other side of the coin, the Yen is continuing to react to constant talking points from heads of the Bank of Japan (BOJ). Today's spat of Yen buying is coming on the back of comments from Japanese Economy Minister Motegi, who stated that he expects CPI figures for the country to continue rising steadily. Despite the market's insistence on buying up Yen every time a representative from Japan speaks up, the continuous stream of rhetoric seems to be taking effect, as the Yen has retreated from a precarious position atop the charts following months of build-up in bullish positions.
GBP/JPY Technicals
The pair is continuing to consolidate just above the 200-day SMA, and H4 candles show a potential floor pricing in off 148.77, and consistently lower highs are still putting strong bearish pressure on potential breakouts to the upside. Intraday support currently rests at the 149.00 handle and 148.50, while resistance prices in from 149.55 and the 150.00 handle above.