The GBP/JPY continued its declining trend. It was quite bad lately because that pair was around 155.80. It is especially when the Tokyo market starts its sales this week. 

That risk barometer jumped to the highest level since at the beginning of 2018 on Thursday. However, the careful sentiment around the British Pound or GBP joined the mixed catalyst. 

Furthermore, the increasing cases of the coronavirus in Japan will test the buyers. Several important sectors in that country is also not in a good condition. That can be seen from various data which are released. 

The Retail Industry in Japan

Lately, the Japanese retail sales for the March period declined by -4.5% versus + 1.2% month on month. However, it noted the increase of 12 percent year-on-year  than the previous reading of 5.2%.

Next, the initial reading of the industrial production on April also has the declining trend month-over-month. That was under the expectation of 4.1% and 1.7 % before that period. 

Menwhile, the yearly data noted the increase of 15.4% versus the market consensus of 3.5 % and also 3.4% noted during the March period. Besides that mixed data, another aspect also brings its impact. 

The example is the risk catalyst which failed to give a clear direction to the GBP / JPY sellers. The plan from Joe Biden for the $6 trillion fund is not in line with the United States data increase lately. 

Is the Government Ready? 

The situation above is quite confusing for most of the market participants. Meanwhile, the readiness from the Japanese is questioned. Do they are able to get more stimulus during this pandemic? 

Many parties think that the government cannot hide their worry due to that case. The pandemic is still becoming a huge concern while the time for holding the Olympics is getting closer. 

Elsewhere, the other aspects add the uncertainty in the market. One of them is about the chance to get a trading deal of America and Chinese. There are a lot of heats between those two countries. 

Aside from that, the chance about that deal adds the market uncertainty. Besides that, a comment from Maros Sefcovic as the European Union Brexit Negotiator leader is also highlighted. 

A Warn from England

Several days ago, Maros said that England must remember about the north Ireland protocol ahead the crucial discussion next week. That comment in fact adds the pessimistic feeling amidst the market. 

In the middle of this game, the periodic contract of S&P 500 made a slight Increase around the level of 4200. However, the 10 Years United States treasury yield is still low and not better as well. 

Another important thing to note is about the holidays in America and England. Those days will make the momentum sellers are not in a good position. That is quite reasonable. 

The Consolidation must be Held

From the progress and conditions above, it is clear that a further consolidation about the GBP/JPY price must be held as soon as possible. It has the crucial role for a further market situation. 

There is also a technical analysis which can describe the whole situation so far. The repeated fail to pass the challenge of 156.00 in the daily close brings the GBP / JPY to check the resistance line before again. 

Before, it was in 155.30 when this news was written. In addition, there is also another aspect which has an impact. One of them is clearly related to the power of the pullback moveenng power. 

Some analysts and experts said that the dragonfly doji is in its multi month position. That is why; that thing is able to add the power to the pullback movement so far.