- GBP / JPY fails to break negative streak.
- The yen strengthens as a fall in Treasury bond yields.
The GBP / JPY cross rose to 149.94 but then changed direction and fell to test the lows of the Asian session. It is trading around 149.35, falling for the fourth day in a row.
The modest rise of the pound against the yen could not be sustained. GBP / JPY is targeting daily lows of 149.27, which if broken would expose support at 149.00. To the upside, a return above 149.60 would ease the downward pressure.
The GBP / JPY decline in the last hour was caused by a rise in the yen throughout the market. The decline in Treasury yields was the key. The 10-year rate is at 1.53%, to test the low of the recent week.
Better-than-expected data from the UK failed to boost the pound. Both the retail sales for March and the PMI for April showed higher than expected figures. In the Eurozone they were also positive, but this did not serve to prop up equity markets, which are retreating, feeding back to the yen.
Technical levels
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