GBP/JPY drops to over 1-week lows, bears eyeing a break below 134.00 mark


  • GBP/JPY extended the previous day’s rejection slide from the 135.00 round-figure mark.
  • The GBP bulls seemed rather unimpressed by Thursday’s upbeat UK employment details.
  • The risk-off mood benefitted the safe-haven JPY and added to the intraday selling bias.

The GBP/JPY cross dropped to over one-week lows in the last hour, with bears now eyeing a sustained break below the 134.00 round-figure mark.

The cross came under some fresh selling pressure on Thursday and extended the previous day's rejection slide from the key 135.00 psychological mark. The offered tone surrounding the British pound was seen as one of the key factors exerting some pressure on the GBP/JPY cross.

The sterling remained depressed following the release of UK employment details, which showed that the number of people claiming jobless benefits unexpectedly fell by 28.1K in June. Adding to this, the unemployment rate held steady at 3.9% in May as compared to 4.2% anticipated.

Meanwhile, concerns about worsening US-China relations overshadowed the latest optimism over a potential COVID-19 vaccine. This, in turn, took its toll on the global risk sentiment, which further benefitted the Japanese yen's relative safe-haven status against its British counterpart.

With Thursday's downfall, the cross has retreated nearly 200 pips from the vicinity of the 136.00 mark over the past five trading sessions. Some follow-through weakness below the 134.00 mark will set the stage for a slide further towards the 133.35-30 horizontal support amid the risk-off mood.

Technical levels to watch

GBP/JPY

Overview
Today last price 134.14
Today Daily Change -0.47
Today Daily Change % -0.35
Today daily open 134.61
 
Trends
Daily SMA20 133.83
Daily SMA50 133.69
Daily SMA100 133.66
Daily SMA200 137.72
 
Levels
Previous Daily High 135.09
Previous Daily Low 134.47
Previous Weekly High 135.92
Previous Weekly Low 134.03
Previous Monthly High 139.74
Previous Monthly Low 131.77
Daily Fibonacci 38.2% 134.71
Daily Fibonacci 61.8% 134.85
Daily Pivot Point S1 134.36
Daily Pivot Point S2 134.1
Daily Pivot Point S3 133.74
Daily Pivot Point R1 134.98
Daily Pivot Point R2 135.34
Daily Pivot Point R3 135.6

 

 

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