- GBP/JPY wobbles inside a 10-pip trading range.
- UK’s optimism over taming the covid contrasts Japan’s worsening virus conditions.
- Off in Tokyo, light calendar restricts pair’s moves ahead of UK Manufacturing PMI.
GBP/JPY seesaws around 151.65 while staying inside the recent trading range amid Tuesday’s Asian session. Although downbeat S&P 500 Futures probed the pair’s month-start rise, bears look for fresh clues to retake controls.
With the news suggesting further virus-led activity controls in Hokkaido, Japan’s largest prefecture by area, S&P 500 Futures drop to the intraday low, down 0.22% on a day by the press time.
Not only the downbeat news from Japan but the UK PM Boris Johnson’s optimism to go ahead with restriction loosening in June also trouble the GBP/JPY traders. Furthermore, UK Foreign Secretary Dominic Raab’s comments pushing for a balanced solution to the Northern Ireland (NI) protocol can magnify the Brexit woes and add to the pair trader’s confusion.
It should, however, be noted that the UK’s covid conditions are much better than Japan and hence the pair could stay on the front foot. Also favoring the quote could be the off in Asian major and optimism surrounding economic growth in the West versus Asia, mainly due to the coronavirus (COVID-19).
Moving on, the second reading of the UK’s Manufacturing PMI for April, expected to confirm 60.7 preliminary forecasts, may offer immediate direction to the GBP/JPY traders. Also, the British trader’s reaction to the latest market moves following the long weekend will be the key as well.
Technical analysis
Unless breaking down the 150.75-70 support confluence comprising 21-day and 50-day SMA, GBP/JPY sellers may not risk entries.
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