- GBP/JPY treading water within Thursday’s range.
- Brexit, BOJ driving respective currencies from new highs.
GBP/JPY is trading sideways with European markets rounding the corner, testing into 149.60.
The Sterling fell in Thursday trading and has failed to make any new territory after bouncing from yesterday’s low of 148.54; the Sterling continues to be undermined by Brexit concerns and growing infighting within the UK’s government, while the high-flying Yen has begun to falter with every push higher as stern rhetoric from the Bank of Japan (BOJ) begins to bring the Yen under heel.
Brexit is beginning to shake confidence in the UK’s stability, with businesses crying for clarification of trade rules following the EU-UK separation, and the UK’s ruling Conservative party is set to become further fractured following Prime Minister Theresa May’s capitulation on residency for EU citizens following Brexit finalization. PM May’s reversal comes on the heels of stern language from EU leaders in Brussels reminding the UK that withholding residency from EU citizens in Britain following Brexit is against European passage laws, while hard-line Brexiteers continue to turn on May, over fears that constant concession to Brussels is undermining UK sovereignty.
After several days of consolidating on the low side, the pair is now approaching major support from the 200-day SMA at 147.64, while support rests at 148.13 and resistance piles up from the 150.00 level and 150.92 above.