- The Sterling has recovered against the Yen, but the chance of continued risk flights remains high heading into the week’s end.
- NFP Friday to cap off a week fraught with risk selling and recovery buying as broad markets focus on geopolitical tensions.
The GBP/JPY has rebounded back above 150.00 from the early Friday drop precipitated by further tariff threats from US President Donald Trump late Thursday after markets briefly recovered from the latest round of trade war fears.
The Sterling is still trading on a backfoot against the Yen heading into NFP Friday, as the Yen remains floating atop the pile as the safe haven of choice with markets keeping one foot in the door thanks to continued tariff rhetoric from both the US and China, as well as uneasiness from some traders heading into the Non-Farm Payrolls event expecting poor showing for the jobs report.
GBP/JPY Levels to watch
The technical outlay for the pair remains the same overall since beginning to drift higher in early March from a bottom at the 145.00 handle, but a continuation of the drop on risk flights could see the GBP/JPY falling into previous support at the 149.50 level, while a correction from today’s knee-jerk risk-off will face resistance at Thursday’s high near 150.65, with further resistance at mid-February’s swing high of 150.90.