GBP/JPY breaks fresh 10-week low as US stocks open in the red
- Stock market indices worldwide are on the backfoot reflecting the climate of tension on the geopolitical scene.
- The UK Gross Domestic Product fails to impress GBP bulls who would need strong data in order to regain faith in Sterling.
The Guppy is breaking fresh 10-week lows as stocks on Wall Street open deeply in negative territories. The currency cross is trading at around 145.60 down 0.40% on Friday.
The yen is among the best-performing currencies in the last few days as investors are worried about the deteriorating geopolitical context. US President Trump wrote a letter to Kim Jong UN on Thursday, saying that he was canceling the summit scheduled on June 12 in Singapore. Additionally, recent news of 25% tariffs on imported vehicles to the US along with the stalemate in the trade war negotiations between the US and China are keeping investors worldwide rather edgy.
Earlier the UK Gross Domestic Product came in line with expectations. Lukewarm data from the UK is rather bad news for GBP as the Bank of England is data-dependant for any rate hike down the road.
GBP/JPY 4-hour chart
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The pair is trading below its 50, 100 and 200-period simple moving averages (SMA) on the 4-hour chart suggesting a strong downward bias. Supports are seen at the 145.00 handle followed by the 144.00 swing low. To the upside, the 146.00 swing low and 147.00 supply level should provide resistance.
Author
Flavio Tosti
Independent Analyst
