GBP/JPY clings to recovery gains around 157.30 area, lacks bullish conviction

GBP/JPY regained positive traction on Friday and recovered a part of the overnight slump.
The risk-on impulse undermined the safe-haven JPY and extended support to spot prices.
A bleak outlook for the UK economy might act as a headwind and cap any further upside.

Haresh Menghani FXStreet

The GBP/JPY cross maintained its bid tone through the mid-European session and was last seen trading around the 157.35 region, up nearly 0.50% for the day.

A goodish recovery in the global risk sentiment - as depicted by a generally positive tone around the equity markets - undermined the safe-haven Japanese yen on Friday. This, in turn, was seen as a key factor that prompted some short-covering around the GBP/JPY cross and allowed spot prices to move further away from a near two-month low touched the previous day.

The attempted recovery, however, lacked bullish conviction amid looming recession fears, further fueled by Thursday's softer UK macro releases. The data suggested that the Bank of England's rate hike cycle could be nearing a pause. This might continue to act as a headwind for the British pound and hold back traders from placing aggressive bullish bets around the GBP/JPY cross.

From a technical perspective, spot prices stalled the recent bearish trend on Thursday ahead of the very important 200-day SMA. The subsequent move up supports prospects for additional gains. That said, the fundamental backdrop makes it prudent to wait for strong follow-through buying before confirming that the GBP/JPY cross has bottomed out in the near term.

Technical levels to watch

GBP/JPY

Overview
Today last price	157.32
Today Daily Change	0.70
Today Daily Change %	0.45
Today daily open	156.62

Trends
Daily SMA20	162.78
Daily SMA50	160.24
Daily SMA100	157.91
Daily SMA200	155.17

Levels
Previous Daily High	159.31
Previous Daily Low	155.6
Previous Weekly High	163.91
Previous Weekly Low	160.32
Previous Monthly High	168.44
Previous Monthly Low	159.64
Daily Fibonacci 38.2%	157.02
Daily Fibonacci 61.8%	157.89
Daily Pivot Point S1	155.04
Daily Pivot Point S2	153.46
Daily Pivot Point S3	151.33
Daily Pivot Point R1	158.76
Daily Pivot Point R2	160.89
Daily Pivot Point R3	162.47

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.

XRP rises alongside peers as ETFs attract inflows

Ripple (XRP) is gaining upside momentum, trading above $1.40 at the time of writing on Wednesday. The remittance token is rising in tandem with major crypto assets, including Bitcoin (BTC), which has crossed above the pivotal $70,000 level, and Ethereum (ETH), which is holding above $2,000.

First Venezuela, now Iran: The US-China energy war escalates

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

Bittensor extends recovery despite retail demand slump

Bittensor, a leading Artificial Intelligence token, is aging up above $190 at the time of writing on Wednesday. Steady price increases characterise the broader crypto market, with Bitcoin holding above $71,000 and Ethereum above $2,000.