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GBP/JPY flubs closing the gap as 143.50 remains close

9/3/2018, 11:07:20 AMTrading Strategies
GBP/JPY flubs closing the gap as 143.50 remains close

The GBP/JPY pairing is knocking around 149.40 in early Monday trading as the pair struggles to close the week's opening bearish gap from the 144.00 handle.

Risk appetite remains in the background for the new week as market tensions resume after the weekend, and the Japanese Yen is seeing some stiff play against the British Sterling. Brexit woes are seeing the GBP continue to flub, and ongoing negotiation roadblocks between the UK and the EU are seeing time beginning to run out for a successful deal to be put in place before the calendar winds up next March, and Prime Minister Theresa May remains firmly entrenched in  her positions as she battles both EU leaders in Brussels and continued hard-liners within her own government.

This week has a limited showing for the JPY on the economic calendar, but GBP traders will be keeping an eye out for the UK's Markit Manufacturing PMI for August due today at 08:30 GMT, forecast to begrudgingly shift from 54 to 55, though an overall lack of meaningful figures for either currency this week will be giving traders cause for pause as market sentiment continues to take its toll on riskier assets.

GBP/JPY levels to watch

The Guppy is drifting back towards last week's lows of 142.50, and bidders will be looking to keep the brakes locked in to prevent a further decay into the year's major technical bottom at 139.90, though buying opportunities are looking thin with stiff resistance from last week's peak of 145.70 and August's ceiling of 147.15.