GBP/JPY falls back to 150.00 on tariff threats, Japan household spending miss

• Yen jerks higher on brief risk-off reaction to more tariff headlines.
• The Sterling is struggling to stage a continuation above the 150.00 level.

The GBP/JPY dropped into the 150.00 major handle in the overnight session as the White House announced it was seeking additional tariffs on another $100 billion in Chinese-made goods.

Thursday markets were marked by a risk recovery as markets cooled off from the early week's risk aversion on escalation in the tariff spat between the US and China, but Trump's seeking of further tariffs despite showing willingness to negotiate kicked the safe-haven Yen higher on reaction as traders grapple with an extended trade war narrative in headlines.

Adding to the Yen's immediate safe-haven bump was a worse-than-expected contraction in Japanese Household Spending, with the year-on-year figure for February coming in at 0.1 percent, a miss on the expected 0.3 percent and a further contraction from the previous figure of 1.9 percent.

GBP/JPY Levels to watch

The 150.00 level is currently holding as immediate support for the pair's action heading into the Tokyo market session, but a continuation of the drop on risk flights could see the GBP/JPY falling into previous support at the 149.50 level, while a correction from today's knee-jerk risk-off will face resistance at Thursday's high near 150.65, with further resistance at mid-February's swing high of 150.90.