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GBP/JPY looks for fresh clues below 143.00 amid risk-on, UK’s political drama

  • GBP/JPY stays modestly changed amid mixed sentiment.
  • UK PM keeps bearing the burden of accusations, risk-tone holds onto recovery.
  • Updates concerning coronavirus, UK politics will be the key amid a lack of data.

GBP/JPY fails to register major moves, around 142.70 currently, during the initial Asian session on Thursday. The pair seems to struggle between the mixed plays of downbeat UK politics, better British economics and the market’s risk-on sentiment.

The UK PM Boris Johnson fails to enjoy the days after Brexit as the opposition remains in full play to criticize the Tory leader on all the grounds. The latest accusations claimed that UK PM Johnson failed on climate change and should not insist on the deportation of Caribbean nationals under criminal charges. It should also be noted that the EU continues to flash signal of no respect to the UK’s thinking of having an upper hand in upcoming trade talks.

On the data front, the final reading of the UK’s Services PMI for January crossed 52.9 forecasts to 53.9 and offered another barrier to the BOE’s anticipated rate cuts of 2020.

Elsewhere, the risk-tone remains light with the US government bonds and Wall Street pleasing the buyers. The reason could be found in overall upbeat data from global powerhouses. Traders might have started to show a little care towards China’s coronavirus as the epidemic continues to grow. The latest data suggests that the death toll has risen beyond 560 in China.

Moving on, a lack of major data/events on the economic calendar will keep qualitative catalysts on the watch.

Technical Analysis

The pair’s failure to cross eight-week-old falling trend line, at 143.30 now, favors its pullback to familiar support territories around 140.80.

 

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