GBP/JPY drops to 1-1/2 week low, below 137.00 mark ahead of Carney


  • Persistent Brexit uncertainties continue to dent sentiment surrounding the GBP. 
  • Risk-off mood benefits the JPY’s safe-haven status and adds to the selling bias.
  • Traders now eye BoE Governor Carney’s speech for some short-term impetus.

The GBP/JPY cross tumbled below the 137.00 handle to hit 1-1/2 week lows in the last hour, albeit managed to recover few pips thereafter. 

The cross extended this week's retracement slide from the 138.35-30 supply zone and remained under some bearish pressure for the third consecutive session on Friday, also marking its fourth day of negative move in the previous five.

Against the backdrop of the Labour party's failed motion to stop a no-deal Brexit, the fact that frontrunner Boris Johnson received an impressive 114 votes added to fears of a no-deal split and kept exerting some pressure on the British Pound.

Given that Johnson has already cleared his stance by saying that he is not looking to extend Article 50 and is also ready to leave the EU on October 31st, a no-deal Brexit still remains very much on the table and might continue to undermine the Sterling. 

Apart from this, deteriorating global risk sentiment, amid fears of a further escalation in trade tensions between the world’s two largest economies, continued benefitting the Japanese Yen’s safe-haven status and further collaborated to the pair’s ongoing slide.

Despite a combination of negative factors, the downside remained cushioned as investors now look forward to the BoE Governor Mark Carney’s scheduled speech – later during the early North-American session, for some meaningful trading impetus.

Technical levels to watch

GBP/JPY

Overview
Today last price 136.92
Today Daily Change -0.46
Today Daily Change % -0.33
Today daily open 137.38
 
Trends
Daily SMA20 138.31
Daily SMA50 142.04
Daily SMA100 143.53
Daily SMA200 143.98
Levels
Previous Daily High 137.79
Previous Daily Low 137.1
Previous Weekly High 138.17
Previous Weekly Low 136.54
Previous Monthly High 146.52
Previous Monthly Low 136.63
Daily Fibonacci 38.2% 137.36
Daily Fibonacci 61.8% 137.53
Daily Pivot Point S1 137.06
Daily Pivot Point S2 136.73
Daily Pivot Point S3 136.37
Daily Pivot Point R1 137.75
Daily Pivot Point R2 138.11
Daily Pivot Point R3 138.44

 

 

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