- GBP / JPY failed to capitalize on its strong intraday positive move at the highest level since February.
- The news of the resignation of Japanese Prime Minister Shinzo Abe sparked long-term aggressive exchanges.
- The focus is now on Abe’s press conference amid the lack of relevant economic data in the market.
The GBP / JPY cross continued its sharp intraday pullback from six-month highs and retreated below the 141.00 mark, coming back closer to the lower end of its daily trading range.
The cross added to this week’s gains and continued to rise until the first part of the trading action on the last trading day of the week. The strong positive momentum was supported by the tone of supply around the pound sterling and benefited from an additional boost from the good mood of the market, which tends to undermine the safe haven demand of the Japanese yen.
The GBP / JPY cross hit its highest level since late February, although it lost momentum near the 141.60 region on reports that Japanese Prime Minister Shinzo Abe would step down due to health concerns . The news sparked a strong market reaction and gave the Japanese yen a big boost, which in turn was seen as one of the key factors in the pair’s sharp pullback.
The cross was last seen hovering near the 140.80-75 region as market players now anxiously await Abe’s 08:00 GMT press conference for further momentum. Apart from this, the broader sentiment of market risk will influence the price dynamics of the JPY and produce significant trading opportunities in the absence of relevant economic releases to the market from the UK.