GBP/JPY fades recovery moves below 154.00 amid Brexit, covid jitters


  • GBP/JPY holds onto previous day’s recovery moves from weekly bottom.
  • EU-UK post last-minute halt to sausage war, Belfast court backs NI protocol arrangements.
  • UK refreshes 2021 high of covid infections, EU citizens jam application British portal for settled status as deadline remains intact.
  • Japan data came in softer, BOE’s Bailey, UK PMI eyed for fresh impulse.

GBP/JPY refreshes intraday low to 153.56, snapping the previous day’s recovery from weekly low, as markets in Tokyo open for Thursday. The pair seems to bear the burden of the coronavirus (COVID-19) and the Brexit woes while paying a little heed to Japan data.

Japan’s Tankan Large Manufacturing Index eased from 15 forecast to 14, versus 5 prior, whereas the Non-Manufacturing Index reversed the -1 prior with +1. Following the release, an anonymous BOJ official said, per Reuters, “surging raw material costs hurting sentiment among some sectors.”

On the other hand, the covid woes remain dominant in the Asia-Pacific region and probe the optimists. While Australia, unfortunately, led the virus woes, Japan’s Kyodo news said, “The Tokyo metropolitan government on Wednesday reported 714 new daily coronavirus cases, reflecting a sharp rebound in the 10 days since the capital exited a state of emergency and shifted to quasi-emergency measures.” Elsewhere, the UK also reported the highest daily rise of covid cases in 2021 and justifies the EU’s compulsory quarantine for British travelers. Even so, the UK governments aim to quarantine free travel for the double-vaccinated, per The Times.

Talking about Brexit, the UK remains intact on its hard deadline of June-end for European citizens if they don’t apply for settled status. The same jammed the application portal and pushed the government to keep millions in the queue. Alternatively, the Belfast court eased the Brexit talks between the UK and the European Union (EU) by supporting the existence of the Northern Ireland (NI) protocol. On the same line was the news that the UK-EU managed over a three-month extension to tame the sausage war, as well as the German-UK agreement over the post-Brexit defence and foreign policy declaration.

Amid these plays, S&P 500 Futures print 0.18% intraday gains but the US 10-year Treasury yields also rise, up 2.8 basis points (bps) to 1.47%, offering mixed clues for the GBP/JPY traders.

Moving on, the UK’s final reading of activity numbers for June and comments from BOE Governor Andrew Bailey will be the key for short-term GBP/JPY moves. Should Bailey backs Haldane’s latest hawkish comments, the pair may reverse the latest pullback. However, covid and Brexit headlines are important to watch as they can trigger surprises.

Technical analysis

Failure to cross the 50-DMA level of 153.75 drags the GBP/JPY prices to a weekly low near 152.60 but the 100-DMA level of 151.92 could restrict the quote’s further weakness.

Additional important levels

Overview
Today last price 153.61
Today Daily Change -0.05
Today Daily Change % -0.03%
Today daily open 153.66
 
Trends
Daily SMA20 154.35
Daily SMA50 153.64
Daily SMA100 151.83
Daily SMA200 145.48
 
Levels
Previous Daily High 153.76
Previous Daily Low 152.67
Previous Weekly High 155.16
Previous Weekly Low 151.32
Previous Monthly High 155.94
Previous Monthly Low 151.32
Daily Fibonacci 38.2% 153.34
Daily Fibonacci 61.8% 153.08
Daily Pivot Point S1 152.96
Daily Pivot Point S2 152.27
Daily Pivot Point S3 151.88
Daily Pivot Point R1 154.05
Daily Pivot Point R2 154.45
Daily Pivot Point R3 155.14

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD battles with 1.1700 as the market mood turns sour

Poor German data and renewed concerns about a default of the Chinese Evergrande property giant undermined investors’ sentiment, pushing them into the dollar’s safety.

EUR/USD News

GBP/USD accelerates its slump, trades around 1.3650

GBP/USD is under strong selling pressure, trimming most of its post-BOE gains. Concerns about the global financial health and slow moves towards tapering weigh on markets.

GBP/USD News

XAU/USD hangs near multi-week lows, around $1,745 ahead of Powell

Gold struggled to capitalize on its attempted intraday recovery move. Hawkish Fed/BoE, rising bond yields acted as a headwind for the metal. Resurgent USD demand exerted additional pressure on the commodity.

Gold News

PBoC imposes ban on crypto trading as it fosters ‘illegal financial activity’

PBoC bans crypto trading activities and a plethora of associated services, labeling it “illegal.” Overseas cryptocurrency exchanges providing services to Chinese residents will be investigated in accordance with the law. 

Read more

Evergrande, VIX and yields make for choppy day ahead

Equity markets remain focused on Evergrande as rumours of a possible default on overseas debt swirl. The market appears to be on the hunt for negative news, which leads us to conclude that stocks are going lower in the short term.

Read more

Forex MAJORS

Cryptocurrencies

Signatures