The opening of the European and British markets seemed to have allowed the GBP/JPY pair traders to consolidate the daily losses amid sluggish market conditions ahead of the key US data concerning growth and spending.
Elsewhere, the Bank of Japan's Summary of Opinions underpins the bearish bias of the GBP/JPY pair as policymakers are divided over the exit of the ultra-easy monetary policy considering the increasing inflation. “The divergence in views highlights the challenge policymakers face in determining whether the recent cost-driven rise in inflation will shift to one backed by robust demand and higher wages - a prerequisite for raising ultra-low interest rates,” said Reuters.
On the other hand, fears of economic slowdown in the UK escalate amid downbeat prints of the British business sentiment index shared by Bloomberg. The Institute of Chartered Accountants in England and Wales said Thursday that its latest monitor of business sentiment dropped to an index reading of -23.4, the weakest since 2009. The last survey, published in November, stood at -16.9.
It should be noted that the anxiety ahead of the next week’s bumper calendar comprising multiple key central bank meetings and Friday’s Tokyo Consumer for January, expected 4.4% versus 4.0% prior, also weigh on the GBP/JPY prices. Furthermore, the downbeat performance of the Treasury bond yields adds to the bearish catalysts’ list for the quote.Although a two-week-old support line puts a floor under the GBP/JPY prices near 160.00, the recovery remains elusive unless the quote provides a daily closing beyond the 200-Exponential Moving Average , around 162.20 by the press time.