GBP/JPY struggles for direction below 148.00

• The cross trades in the middle of the range below 148.00.
• JPY moves higher on falling US yields.
• Next meaningful vote in the HoC likely on Wednesday.

GBP/JPY navigates sub-148.00 levels at the end of the week, still without a clear direction following Thursday’s pullback from YTD peaks.

GBP/JPY retreats from 2019 highs near 149.00

After climbing to the boundaries of the 149.00 handle, or new yearly highs on Thursday, the cross met some selling pressure and retreated to the 147.40 region, where some decent support seems to have emerged.

The sentiment around the Sterling has deflated somewhat after the House of Commons voted for an extension of Article 50 yesterday, while it is expected to remain cautious ahead of another meaningful vote on May’s Brexit plan on Wednesday.

In the meantime, the cross is not paying attention so far to the current bout of upside pressure in the Japanese safe haven in response to a sharp pullback in US yields.

GBP/JPY key levels

As the moment the cross is up 0.02% at 147.89 facing the next support at 146.81 (10-day SMA) seconded by 144.69 (200-day SMA) and finally 143.72 (low Mar.11). On the other hand, a break above 148.87 (2019 high Mar.14) would expose 149.48 (monthly high Nov.8 2018) and then 149.71 (2019 high Sep.21 2018).