GBP/JPY: Bulls struggle to defend 154.00, UK PMI in focus


  • GBP/JPY steps back from weekly top amid a choppy session.
  • BOJ minutes conveyed policymakers’ indecision, Powell’s rejection to rate hikes favor market mood.
  • UK stays optimistic over removing virus-led restrictions on July 19, Brexit woes continue.
  • Japan’s Leading Economic Index for April, UK’s preliminary PMIs for June will be crucial for fresh impulse.

GBP/JPY eases to 154.35 during the latest pullback from the week’s top amid Wednesday’s Asian session. The cross-currency pair initially cheered risk-on mood to extend the previous day’s upside momentum before the sustained weakness of the US Treasury yields probed buyers of late. Also testing the pair’s run-up could be the cautious mood ahead of the key UK data.

Comments from most US Federal Reserve (Fed) officials, including Chairman Jerome Powell, ruled out any immediate challenges to the central bank’s easy-money policies. This U-turn from the last week’s hawkish rhetoric favored market sentiment and propelled the GBP/JPY during the three-day uptrend earlier in Asia. Additionally, the UK’s optimism towards July 19 deadline for unlocking also favors the pair buyers.

However, BOJ minutes suggesting uncertainty over the economic outlook and challenges to inflation pick-up tested the quote’s upside afterward. Additionally, the UK’s Brexit struggles after five years of battle, the recent ones over the EU citizen’s application to remain in Britain, also weigh n the GBP/JPY prices.

It’s worth noting that a lack of major data/events restricts the market moves ahead of the key UK PMI for June, as well as April’s Leading Economic Index for Japan.

Amid these plays, S&P 500 Futures print mild gains whereas the US 10-year Treasury yields remain pressured.

Given the anticipated weakness in the scheduled data, Britain’s upbeat outlook over removing the virus-led activity restricts may help the GBP/JPY prices in the short term. However, major attention will be given to tomorrow’s BOE.

Technical analysis

Unless declining below April top near 153.40, GBP/JPY stays directed towards 21-day Simple Moving Average (SMA) and a monthly resistance line, respectively around 154.80 and 155.20.

Additional important levels

Overview
Today last price 154.34
Today Daily Change 0.01
Today Daily Change % 0.01%
Today daily open 154.33
 
Trends
Daily SMA20 154.79
Daily SMA50 153.24
Daily SMA100 151.26
Daily SMA200 144.91
 
Levels
Previous Daily High 154.47
Previous Daily Low 153.1
Previous Weekly High 155.49
Previous Weekly Low 152
Previous Monthly High 156.08
Previous Monthly Low 150.93
Daily Fibonacci 38.2% 153.95
Daily Fibonacci 61.8% 153.62
Daily Pivot Point S1 153.46
Daily Pivot Point S2 152.6
Daily Pivot Point S3 152.09
Daily Pivot Point R1 154.84
Daily Pivot Point R2 155.34
Daily Pivot Point R3 156.21

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains depressed below 1.1850 after the Fed's taper talk

EUR/USD is trading under 1.1850, hit by hawkish comments by the Fed's Clarida and Daly. The bank is nearing tapering its bond-buying scheme, a move that could happen this year. US jobless claims and a speech from the Fed's Waller are eyed.

EUR/USD News

GBP/USD flirts with 1.3900 ahead of the BOE's Super Thursday

GBP/USD is licking its wounds around 1.3900 ahead of the BOE’s Super Thursday rate decision in which it also releases new forecasts. Declining covid cases are supporting sterling while hawkish comments from the Fed's Clarida are boosting the dollar.

GBP/USD News

XAU/USD off highs, steady around $1810 ahead of BOE, US data

Gold price is trading almost unchanged on the day, unable to hold at higher levels, despite the latest pullback in the US dollar across the board. The cautious tone across the European markets fuelled the risk-off flows in the US Treasuries, downing the yields alongside the dollar.

Gold News

Cryptocurrency markets make comeback as BTC bulls resurface

Bitcoin price taking a second attempt at an upswing to retest $42,451. Ethereum price has flipped a crucial resistance level at $2,640 into a support barrier.

Read more

Bank of England Preview: Five reasons the doves are set to win Super Thursday

An epic battle between hawks and doves on Super Thursday? That is a dramatic way to view the Bank of England's upcoming rate decision – yet there are good reasons to expect doves to carry the day. That would send sterling down. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures