Sterling’s decline picks up momentum earlier on news that the UK government conceded that they couldn’t finish Brexit negotiation with opposition labor soon. And hence, Cabinet Minister David Lidington confirmed European parliament elections will go ahead in UK on May 23. Then there were even reports that the discussion between Prime Minister Theresa May and opposition leader Jeremy Corbyn was close to a collapse.
GBP/JPY is one of the weakest pair today on risk aversion too. The break of 143.72 support aligns its outlook with USD/PY and EUR/JPY. That is, rebound from 131.51 has completed at 148.87 already, ahead of 149.48 resistance. Further fall should be seen to 38.2% retracement of 131.51 to 148.87 at 142.23 next.
