GBP/JPY bears break below 138 handle, playing catch up with Sterling's weakness

Ross J Burland FXStreet

Currently, GBP/JPY is trading at 137.64, down -0.54% on the day, having posted a daily high at 138.52 and low at 137.60.

Forex today: improved risk sentiment across the board, GBP/USD worst performer

Sterling crosses are taking a beating with GBP/JPY playing catch-up with the rest of the cross's bears first out of the blocks - that would be GBP/AUD. However, cable is now testing critical support levels on this move.

UK PM May signs Article 50 letter

The UK PM Theresa May has already signed the letter and the British ambassador, Sir Tim Barrow, is due to deliver it to EU's Donald Tusk around 12GMT. Tusk holds a press conference announcing that the negotiations will formally begin in the process of separating Britain from the European Union.

Meanwhile, USD/JPY is holding up in Tokyo after stops triggered a decent score on the 111 handle to 111.20 highs overnight with Wal Street on the march. Risk-on aided a recovery in the major unit that may slow down the crosses decline should bull's remain in control - hence GBP/JPY bears were last out of the blocks on this move in sterling just before the open.

Article 50 to be triggered: "So what now?" - Westpac

GBP/JPY levels

GBP/JPY is now posting the lowest levels since Jan 16 earlier this year is reversing 86% of January's rally from 136.44 to 144.72. The cross is well below the 2017 support line at 138.50. On a correction, the 20-d sma is located at 138.63 to place the cross back into neutral territory.

USDJPY: Selling rallies towards 111.70

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.