GBP/JPY bears pressing the bulls back as cable wobbles


  • GBP/JPY is lower as the pound sinks towards daily lows vs the US dollar. 
  • Traders are treading carefully around the UK's coronavirus and Brexit risks. 

At the time of writing, GBP/JPY is a touch lower by 0.3% at 153.05 and is trading between a low of 152.61 and a high of 153.57 as the British currency drops towards levels to make for the worst month since September.

The US dollar has been on the front foot for the most part since the Federal Reserve surprised with a hawkish hold at their last meeting around which has seen the pond pressured in recent times. 

Sterling had otherwise been riding optimism in the UK's vaccination and economic advances to near three-year highs.

However, the recent drop in the pound in the spot market has squeezed some of the speculative long positions out in the futures markets which is, however, still maintaining a net long position on the pound. 

However, net GBP long positions did fall sharply from their strongest levels since March as investors tread water over uncertainty around the spread of the delta variant of the coronavirus in the nation.

The UK government has had to delay the final phase of reopening the economy and Prime Minister Boris Johnson announced at the start of the week that the remaining COVID-19 restrictions could be lifted on July 19.

A widely vaccinated population is ensuring that there are not as many hospitalization numbers or deaths this wave around which is likely supporting GBP to some extent as investors bet on a post covid nation and economic recovery.  

Meanwhile, there are still some concerns over Brexit and N.Ireland. 

Traders are on the lookout for an agreement that could be reached within the European Union in the coming 48 hours to avoid a ban on chilled meat product exports from Britain to Northern Ireland. The current grace period is due to end on Wednesday.

GBP/JPY

Overview
Today last price 153.07
Today Daily Change -0.48
Today Daily Change % -0.31
Today daily open 153.55
 
Trends
Daily SMA20 154.53
Daily SMA50 153.53
Daily SMA100 151.66
Daily SMA200 145.29
 
Levels
Previous Daily High 154.23
Previous Daily Low 153.39
Previous Weekly High 155.16
Previous Weekly Low 151.32
Previous Monthly High 156.08
Previous Monthly Low 150.93
Daily Fibonacci 38.2% 153.71
Daily Fibonacci 61.8% 153.91
Daily Pivot Point S1 153.22
Daily Pivot Point S2 152.88
Daily Pivot Point S3 152.38
Daily Pivot Point R1 154.06
Daily Pivot Point R2 154.57
Daily Pivot Point R3 154.9

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD battles with 1.1700 as the market mood turns sour

Poor German data and renewed concerns about a default of the Chinese Evergrande property giant undermined investors’ sentiment, pushing them into the dollar’s safety.

EUR/USD News

GBP/USD accelerates its slump, trades around 1.3650

GBP/USD is under strong selling pressure, trimming most of its post-BOE gains. Concerns about the global financial health and slow moves towards tapering weigh on markets.

GBP/USD News

XAU/USD hangs near multi-week lows, around $1,745 ahead of Powell

Gold struggled to capitalize on its attempted intraday recovery move. Hawkish Fed/BoE, rising bond yields acted as a headwind for the metal. Resurgent USD demand exerted additional pressure on the commodity.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

Evergrande, VIX and yields make for choppy day ahead

Equity markets remain focused on Evergrande as rumours of a possible default on overseas debt swirl. The market appears to be on the hunt for negative news, which leads us to conclude that stocks are going lower in the short term.

Read more

Forex MAJORS

Cryptocurrencies

Signatures