GBP/JPY drops in Tokyo

• GBP continues pullback from 12-month highs

• Brexit continues to weigh on GBP and Theresa May

GBP/JPY is dropping lower in Tokyo, trading just below ¥153.10 after falling slightly during New York.

Brexit continues to undermine the British Pound, with Theresa May caught between hardline Tory Conservatives on one side, and European leaders in Brussels on the other. May is walking a tightrope of expectations as public support for Brexit begins to wane in polls; EU leaders in Brussels are pushing for the UK to continue to adhere to Eurozone legislative decisions during the 20-month Brexit proceedings, and in-fighting is beginning to deepen within Theresa May's own Tory Conservative party as officials disagree over where UK sovereignty ends and EU compliance begins, with hardline Tories obsessing over the intrusion of EU policies into UK autonomy. 

Soft economic data for Japan

Economic data for Japan has disappointed market analysts recently, and the Bank of Japan continues to reiterate their expectations of an economic slowdown in the first half of 2018, as well as continued dedication to their QQE program, with BoJ Governor Kuroda continuing to talk down market expectations of an early taper from Japan's central bank, especially following the surprise cut to the amount of government bonds the BoJ is dedicated to purchasing on a recurring basis, which was interpreted by many market participants as signs of an early, or 'stealth taper', from the BoJ.

GBP/JPY technical levels

GBP/JPY touched a 12-month high last week before retreating back towards the major swing support level at ¥152.75, and intraday traders will note the nearest support is currently at ¥152.85 with resistance being provided by the pre-Tokyo consolidation area around ¥153.32.