GBP/JPY dumps ahead of Tokyo, still trying to grasp 147.00
- Sterling slips against the Yen on weakening risk appetite.
- Market confidence being shaken by Cohn's announced departure as Trump's economic advisor.
The GBP/JPY pair is down in the overnight session but seems to have hit the brakes for now, trading into 146.90 as of writing.
The Sterling whipped against the Yen in Tuesday's trading but began to decline immediately at the start of the overnight session as risk appetite sapped out of markets, with the announcement that Gary Cohn, Trump's top economic advisor, is resigning from the White House.
Brexit continues to weigh on the Pound, with a lack of clarity plaguing UK businesses who are pleading political leaders for insight into the regulatory architecture that they will have to grapple with once Brexit begins next March underway. Prime Minister Theresa May's speech last Friday did little to assuage fears, as she conceded that despite her willingness to meet European Union leaders at the halfway point on many issues, nothing concrete is slated to be on the table for Brexit as of yet, and the future of UK-EU relations is still up in the air as Brexit looms in the future.
The Yen remains the markets' safe-haven currency of choice, despite continuous jawboning from the Bank of Japan (BOJ) trying to talk down the Yen. The constant rhetoric seems to be having an effect overall in broad markets, with the Yen backing away from record highs, yet the JPY's strong position still threatens to undermine what little growth Japan's economy is currently experiencing.
GBP/JPY Technicals
Today's sentiment drop takes the pair back away from the 200-day SMA, and February's decline looks set to continue as H4 charts show the GBP/JPY still making consistently lower highs and lower lows. Intraday support is at 145.90 and the 145.00 handle, while resistance sits at 148.00 and 148.50.