GBP/JPY defends 154.00 on mixed Japan data, mildly bid S&P 500 Futures

• GBP/JPY eases from intraday top, near the highest since February 2018.
• Japan current account, bank lending came in weaker, trade figures improved.
• Market sentiment seems to cheer vaccine news to battle US CPI-led pessimism.
• BOE’s Haldane cited ‘power through’ UK economy in the months ahead.

Having refreshes multi-month top the previous day, GBP/JPY prints mild gains while taking rounds to 154.20 amid the initial hour of Tokyo open. In doing so, the pair justifies small gains of risk barometer and mixed data, as well as bullish comments from the Bank of England (BOE) Chief Economist Andy Haldane.

Starting with Japanese data, the headlines Current Account eased below ¥2796.2 B marked consensus and ¥2916.9 B prior to ¥2650.1 B on a non-seasonally adjusted basis in March. Alternatively, Trade Balance BOP Basis grew past ¥562 B expected and ¥524.2 B previous readouts to nearly ¥983.00 B in the stated month. Further, Bank Lending including trusts eased below 6.2% YoY to 4.8% while the ex-trust figures dropped from 5.9% to 4.3%.

Not only the mixed data but the coronavirus (COVID-19) woes in Japan also weighed on the Nikkei 225, down 1.53% to 27,730 by the press time.

On the other hand, BOE’s Haldane cheered the previous day’s UK data dump while citing hopes of double-digit GDP figures while also suggesting fewer inflation challenges.

Read: BOE Haldane: Economy will 'power through' in the months ahead

Furthermore, news that the UK scientists fear extension of the unlock deadline, June 21, amid surging Indian variants weigh on the risk-on mood.

Even so, S&P 500 Futures seem to cheer the US Centers for Disease Control and Prevention (CDC) approval to Pfizer's use of the covid-19 vaccine in adolescents age 12 and older, up 0.30% while writing.

Given the lack of major data and absence of some markets in Asia and Europe, GBP/JPY may struggle to replicate the previous day’s strong run-up. However, the bulls may remain hopeful unless there are major challenges to the sentiment, likely from the Middle East.

Technical analysis

Although a clear break above the 154.00 threshold, not to forget April 2018 top near 153.85, keeps GBP/JPY buyers hopeful, the upper line of an 11-week-old rising channel around 155.00 tests the pair’s immediate upside moves.