GBP/JPY clings to mild losses below 190.50 amid BoJ’s intervention fears

GBP/JPY trades with a mild negative bias around 190.30 on Tuesday.
The verbal intervention from the Japanese Finance Minister and rising Middle East geopolitical tensions lift the Japanese Yen (JPY).
BoE’s Bailey signaled markets are right to expect more than one interest rate cut this year.

Lallalit Srijandorn FXStreet

The GBP/JPY cross trades in negative territory for the fifth straight day near 190.30 on Tuesday during the early European session. The verbal intervention from the Japanese authorities provides some support to the Japanese Yen (JPY) for the time being.

Japanese Finance Minister Shunichi Suzuki said on Tuesday that he will not rule out any steps to respond to disorderly moves and that he will monitor foreign exchange (FX) moves with a high sense of urgency. The verbal intervention might lift the JPY in the near term and cap the upside for the GBP/JPY cross.

Additionally, warplanes attacked a building inside Iran's consulate complex in Damascus, Syria, on Monday. Some of the most senior members of Iran's Revolutionary Guard were killed, marking an escalation in the confrontation that has lasted over half a year. The ongoing geopolitical tensions in the Middle East might further boost safe-haven assets like JPY.

On the other hand, the dovish stance of the Bank of England (BoE) weighs on the Pound Sterling (GBP). The BoE Governor Andrew Bailey signaled markets are right to expect more than one interest rate cut this year, saying he is increasingly confident inflation is heading towards the central bank’s target. Any further dovish comments from the BoE official are likely to exert selling pressure on the GBP and create a headwind for the GBP/JPY pair.

GBP/JPY

Overview
Today last price	190.34
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	190.34

Trends
Daily SMA20	190.45
Daily SMA50	189.42
Daily SMA100	186.83
Daily SMA200	184.91

Levels
Previous Daily High	191.36
Previous Daily Low	190.18
Previous Weekly High	191.68
Previous Weekly Low	190.35
Previous Monthly High	193.54
Previous Monthly Low	187.96
Daily Fibonacci 38.2%	190.63
Daily Fibonacci 61.8%	190.91
Daily Pivot Point S1	189.9
Daily Pivot Point S2	189.46
Daily Pivot Point S3	188.73
Daily Pivot Point R1	191.07
Daily Pivot Point R2	191.8
Daily Pivot Point R3	192.24

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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