GBP/JPY bounces off to regain 136.00 amid risk reset, eyes UK Retail Sales, PMIs

  • GBP/JPY trims two-day losses with a pullback from 135.76.
  • US diplomats’ China visit dims prospects of worsening Sino-American tension.
  • Reuters conveyed British employers’ optimism, UK Gfk Consumer Confidence meets -27 preliminary for July.

GBP/JPY inches closer to take back 136.00, currently around 135.95, during the early Friday’s Asian trading session. The pair earlier extended Thursday’s losses amid fears of a full-fledged US-China tussle. Though, recent positive headlines have offered a little relief to the pair bulls as the quote recovers from 135.76.

Despite US President Donald Trump’s downbeat comments over the much-awaited trade deal, following China’s harsh statements on orders to close the Houston Consulate office, some of the American diplomats are cited to travel the dragon nation. The news suggests that there is still a ray of hope concerning the trade deal between the world’s top two economies.

Also on the positive side is Reuters’ update from the UK’s Recruitment & Employment Confederation. The institute’s measure of employers' confidence in hiring and investing surged to highest since February to +4 for the initial July after -9 prints of June. Though, Britain’s GfK Consumer Confidence for July matched -27 preliminary forecasts.

While portraying the risk-reset, S&P 500 Futures defy Wall Street’s downbeat performance to gain 0.30% to 3,237. However, the US 10-year Treasury yields and stocks in Asia-Pacific remain sluggish.

Although the US-China stories, coupled with the coronavirus (COVID-19) worries and talks of the further stimulus from the US and the UK, will keep traders entertained, June month British Retail Sales will offer immediate direction to the GBP/JPY pair amid Japan’s off. The key economic data is expected to mark recoveries from May month’s -13.1% contraction to -6.4% YoY figures. Following that, preliminary readings of Markit Manufacturing and Services PMIs for July, expected 52.00 and 51.5 respectively verses 48.5 and 50.1 priors in that orders, will be the keys to watch. Additionally, Brexit headlines and any updates concerning the UK PM Boris Johnson’s stand on the pandemic fight will busy the pair traders.

Technical analysis

The pair’s downside break of 200-day EMA level of 136.13 favors the bears to aim for an ascending trend line from June 29, at 134.86 now.

Additional important levels

Today last price 135.93
Today Daily Change -0.23
Today Daily Change % -0.17%
Today daily open 136.16
Daily SMA20 134.63
Daily SMA50 134.16
Daily SMA100 133.48
Daily SMA200 137.65
Previous Daily High 136.62
Previous Daily Low 135.85
Previous Weekly High 135.49
Previous Weekly Low 133.99
Previous Monthly High 139.74
Previous Monthly Low 131.77
Daily Fibonacci 38.2% 136.14
Daily Fibonacci 61.8% 136.33
Daily Pivot Point S1 135.8
Daily Pivot Point S2 135.43
Daily Pivot Point S3 135.02
Daily Pivot Point R1 136.57
Daily Pivot Point R2 136.99
Daily Pivot Point R3 137.35



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