GBP/JPY eases from tops, still well bid just below mid-134.00s

  • The UK Supreme Court ruled that Johnson acted unlawfully when he suspended Parliament.
  • The development further raised expectations of a softer Brexit and provided a goodish lift.

The GBP/JPY cross held on to its strong bid tone through the mid-European session, albeit has retreated around 20-25 pips from daily tops.
After the recent pullback from over two-month tops, a combination of supporting factors helped the cross to regain strong positive traction on Tuesday and snap two consecutive days of losing streak. The cross found some initial support from a weaker tone around the safe-haven Japanese Yen, which was weighed down by uncertainty over US-Japan trade deal and dismal manufacturing PMI print.

Brexit optimism boosts British Pound

Meanwhile, the British Pound picked up some extra pace across the board and provided a goodish lift to the cross after the UK Supreme Court ruled unanimously against the government, saying that the UK PM Boris Johnson acted unlawfully when he suspended the Parliament just weeks before Brexit and the prolonged prorogation was without reasonable justification.
This was followed by speaker of the lower house - John Bercow’s announcement that he instructed authorities to prepare the resumption of business of the House of Commons and announced that the House will sit on Wednesday at 11:30 AM. This gives the UK lawmakers up to two weeks of extra time on hands to prevent a no-deal Brexit.
However, the fact that there are still big differences between the UK and the EU held investors from placing any aggressive bullish bets. The concerns were further fueled by earlier comments by the EU's Chief Negotiator Michel Barnier, saying that there is no reason to be optimism about a possible solution to the Irish backstop issue.
Hence, it will be prudent to wait for a strong follow-through buying interest before traders start positioning for any further near-term appreciating move, possibly back towards reclaiming the key 135.00 psychological mark en-route the recent swing highs resistance near the 135.75 region.

Technical levels to watch


Today last price 134.37
Today Daily Change 0.63
Today Daily Change % 0.47
Today daily open 133.74
Daily SMA20 132.15
Daily SMA50 131.47
Daily SMA100 134.73
Daily SMA200 139.23
Previous Daily High 134.56
Previous Daily Low 133.35
Previous Weekly High 135.75
Previous Weekly Low 133.88
Previous Monthly High 132.56
Previous Monthly Low 126.54
Daily Fibonacci 38.2% 133.81
Daily Fibonacci 61.8% 134.1
Daily Pivot Point S1 133.2
Daily Pivot Point S2 132.67
Daily Pivot Point S3 131.99
Daily Pivot Point R1 134.41
Daily Pivot Point R2 135.09
Daily Pivot Point R3 135.62



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD struggling to hold above 1.1000

The EUR/USD pair is trading at one-month lows just above the 1.1000 level, undermined by softer-than-expected EU data and persistent uncertainty surrounding the US-China trade relationship.


GBP/USD stuck around 1.2850

The Pound traded lifeless this Tuesday, confined to familiar levels against most rival despite mixed employment data and mounting tensions heading into December’s election.


USD/JPY hits fresh lows under 109.00 as Wall Street erases gains

The USD/JPY pair printed fresh lows during the American session as equity prices moved off highs in Wall Street.


Gold: Remains vulnerable near 3-month lows

Gold remained depressed through the mid-European session on Tuesday and is currently placed near three-month lows, just above $1450 level. 

Gold News

Bitcoin: Google's threat, halving, and the best cost strategy

Google threat Bitcoin ecosystem with its Sycamore Quantum Computer. According to experts, the next halving in the Bitcoin mining rewards will occur on May 14, 2020. Dollar-Cost Averaging strategy has yielded a return of over 500 % since 2014.

Read more