GBP/JPY struggling to hang onto 142.50 ahead of Japan and UK GDP

• The Sterling continues to struggle to find bidders, slumping to a 12-month bottom against the JPY.
• Friday sees GDP figures for both the Yen and the Pound, and volatility can be expected to remain high.

The GBP/JPY is trading into 142.50 heading into Friday's action; the Sterling attempted a bullish recovery on Wednesday, peaking at 143.85, but markets reversed their risk flows and saw the Pound flub against the Japanese Yen, erasing the day's early gains and keeping the Guppy firmly in bearish territory.

Thursday was a light day on the UK's economy calendar, leaving the Sterling to waffle against the broader G10 currencies with Brexit concerns remaining close at hand and a dovish Bank of England (BoE) leaving much to desire in the way of rate hikes in the face of a questionable economic recovery bracing for a slowdown.

JPY traders are facing Japanese GDP figures due for the early Friday session, and Japan's economy is expected to recover modestly from the first quarter's contraction, though Friday's action also brings GDP numbers for the UK later on at 08:30 GMT, and the GBP/JPY is looking down the barrel of a tense day in the markets with high-tier data from both ends.

GBP/JPY levels to watch

The Guppy is trading into 12-month lows, and continued bearish pressure threatens to drop the pair below the 142.00 barrier, and bullish interest in the pair appears to be on vacation, with the current week's high sitting far above at 144.70, and last week's peak even further off in the distance sitting near 147.15.