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GBP/JPY consolidates recent gains to over 1-month tops, holds above 132.00 handle

  • Reviving safe-haven demand benefits JPY and keeps a lid on the early uptick.
  • Receding fears of a no-deal Brexit might continue to underpin the British Pound.
  • Bulls seemed rather unimpressed by Tuesday’s mostly upbeat UK jobs report.

The GBP/JPY cross seesawed between tepid gains/minor losses through the European session on Tuesday and consolidated the recent up-move to over one-month tops.
 
The cross added to its recent strong recovery gains from closer to multi-year lows and climbed to the 1.3300 neighbourhood amid the recent optimism over soft-Brexit, especially after the UK Parliament passed legislation to take control of the Brexit agenda.

Cautious mood exerts some pressure

The UK lawmakers on Monday further voted to reject the UK PM Boris Johnson's bid for an early election, which might now require Johnson to ask the European Union to delay Brexit for three months beyond October 31 if a new deal is not achieved by the deadline.
 
Meanwhile, the GBP bulls seemed rather unimpressed by Tuesday's mostly upbeat UK employment details, with the prevailing cautious mood providing a minor lift to the Japanese Yen's relative safe-haven status and kept a lid on any further up-move for the cross.
 
Data released on Tuesday showed that the UK average weekly earnings including bonuses rose 4.0% 3m/Yr in July as compared to the previous month's upwardly revised reading of 3.8% and the unemployment rate fell to 3.8% during the reported month.
 
Looking at the technical picture, the cross has already found acceptance above a confluence resistance - comprising of 50-day SMA and a two-month-old descending trend-line - and thus, support prospects for an extension of the recent positive momentum.

Technical levels to watch

GBP/JPY

Overview
Today last price132.23
Today Daily Change-0.15
Today Daily Change %-0.11
Today daily open132.38
 
Trends
Daily SMA20129.6
Daily SMA50131.76
Daily SMA100135.8
Daily SMA200139.67
Levels
Previous Daily High132.57
Previous Daily Low130.81
Previous Weekly High132.19
Previous Weekly Low126.67
Previous Monthly High132.56
Previous Monthly Low126.54
Daily Fibonacci 38.2%131.9
Daily Fibonacci 61.8%131.48
Daily Pivot Point S1131.27
Daily Pivot Point S2130.16
Daily Pivot Point S3129.51
Daily Pivot Point R1133.03
Daily Pivot Point R2133.68
Daily Pivot Point R3134.79

Author

Haresh Menghani

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

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