GBP/JPY backslides on data-light Thursday

• GBP/JPY dumped another 0.6% and tested the 200 EMA on Thursday.
• Another limited showing on the economic calendar this week for the Guppy.
• Pound Sterling traders, take heart: UK inflation and consumer activity figures due next week.

GBP/JPY took another leg lower on Thursday, falling to it's lowest prices in almost a month and coming within touch range of the 200-day Exponential Moving Average (EMA). Market sentiment has tilted to the cautious side this week, keeping the Guppy hobbled and drifting into the midrange.

BoE's Breeden: Some evidence of activity weakening, but we expect it to pick up again

Economic figures have been light on both sides of the currency pair this week, leaving policymaker speeches as the key driver for GBP/JPY traders to chew on. UK Chief Secretary to the Treasury Darren Jones spoke on Thursday, noting that UK financial markets continue to function in an "orderly way." UK financial markets responded by promptly selling the Pound Sterling even further and stepping up their bets of further rate cuts from the Bank of England (BoE) throughout the year.

Yen traders have faced a borderline anemic economic calendar this week, and next week promises more of the same. On the other side of the Guppy, UK traders will have Consumer Price Index (CPI) inflation and Retail Sales figures to context with next week.

GBP/JPY price forecast

The Guppy's backslide on Thursday saw the pair tap the 200-day EMA once again as the pair grinds into a medium-term consolidation pattern. Bidders will be looking to price in a near-term floor at the 200-day EMA near 193.50, while sellers will want to crack the key technical level and head for the last major swing low point near the 188.00 handle.

GBP/JPY daily chart