GBP/JPY defends 151.00, tracks mildly bid S&P 500 Futures

• GBP/JPY holds onto Friday’s upbeat performance amid a quiet session.
• UK holidays, light calendar in Asia­–Pacific restrict market moves.
• Covid woes, geopolitical jitters challenge the upside momentum.

GBP/JPY edges higher around the intraday top of 151.26 during a sluggish Asian session on Monday. While Fed Chairman Jerome Powell-led optimism keeps buyers hopeful, an absence of major data/events and off in the UK restrict the cross-currency pair’s immediate upside. Also challenging the buyers are the coronavirus woes and geopolitical challenges.

Japan’s Kyodo news quotes Health Minister Norihisa Tamura while saying, “’ Given the current situation, it's probably very difficult to end the emergency declaration covering 21 of Japan's 47 prefectures as scheduled.” It’s worth noting that the current emergency is scheduled to expire on September 12.

On the other hand, Sky News said, “The UK has recorded another 33,196 coronavirus cases and 61 deaths in the latest 24-hour period, government figures show. The figures compare with 32,406 COVID-19 cases and 133 deaths reported on Saturday, and 31,914 new cases and 49 deaths this time last week.” While the UK is preparing to vaccinate children ages 12-15, chatters that England’s covid infections are 26 times than the last year portray the virus woes in Britain.

Elsewhere, City A.M. quotes research carried out by e-money platform Tide to say that the UK is the best country in Europe to start a business. Also on the positive side could be the news that Britain is bracing for the world-leading hydrogen economy.

On a broader note, Fed Chair Powell’s measured response over tapering and hurricane Ida joins Sino-American tussles and the jitters emanating from the Middle East to portray mixed sentiment.

That said, S&P 500 Futures rise 0.11% whereas the U 10-year Treasury yields drop 0.08% basis points to 1.304% by the press time.

It should be observed that Japan’s Retail Sales for June rose past the 2.1% YoY forecast to 2.4% but fails to help the GBP/JPY traders.

Moving on, a light calendar keeps risk catalysts on the driver’s seat. However, the British traders’ off from the markets should limit the GBP/JPY moves.

Technical analysis

Unless crossing 20-DMA and a descending resistance line from May 28, respectively around 151.50 and 152.55, GBP/JPY remains bearish