Sterling is trading higher ahead of data releases while the yen is weaker on the day
And that is seeing GBP/JPY back on the move as the pair now trades higher by 0.5% on the day. The pair looks to be closing in on the 50.0 retracement level @ 147.96 - which capped gains for the month of June.
Beyond that, there is the 100-day MA @ 148.29 which is sitting not too far away. The risk to any trade in the pair now will be UK data at the bottom of the hour. The market seems to be unperturbed by Brexit risks and political uncertainty at this point, and sterling has moved higher ahead of the data releases.
It's hard to say if this is due to any leaks (as much as I hate to point to this) but UK data tends to have a history to it. Nonetheless, the market is positioning itself for strong data and misses there could derail the rally today.
GBP/JPY has been on a decent uptrend since touching the lows at the end of June - and has continued to hold a near-term bullish momentum since the start of the month. Any downside challenge by sellers will have to break the 100-hour MA @ 146.58 first before the 200-hour MA @ 146.03 is to be tested.
Those will be key levels to watch out for in the aftermath of the UK data releases later.
