- GBP/JPY steps back from weekly top, probes the previous day’s positive performance.
- Market sentiment dwindles amid quiet session, Fedspeak, covid are the key catalysts.
- Japanese stocks open higher but S&P 500 Futures struggle, US Treasury yields stay quiet.
- Risk catalysts become crucial for fresh impulse amid a light calendar.
GBP/JPY eases to 153.50, down 0.12% intraday, in the latest pullback moves amid the initial hour of Tokyo open on Tuesday. It’s worth noting that the lack of major catalysts and cautious sentiment ahead of the day’s, as well as the week’s, key data/events probe the bulls after posting the heaviest recovery moves since late May.
Although a majority of the Fed policymakers tried to tame the tapering and rate hike concerns, indecision among the US central bank board members couldn’t be ruled out. This joins the escalating inflation pressure from strong data and hopes of more stimulus to keep traders divided.
Additionally, fears of the covid’s Delta variant and criticism over Japan’s holding of Olympics join the Brexit woes to weigh on the quote. The UK and Japan both suffer from the virus resurgence wherein Britain recently pushed back the unlock date. Furthermore, tussles concerning the Northern Ireland (NI) border become a tough nut to crack for the British and the European Brexit negotiators of late. On the contrary, the UK is up for signing the trans-Pacific trade deal.
Even so, Japan’s Nikkei jumps over 2.0% and the US S&P 500 Futures also print mild gains. However, the US 10-year Treasury yields struggle to keep the previous day’s recovery from the four-month low.
Moving on, a lack of major data/events can keep troubling GBP/JPY traders, which in turn helps intraday sellers amid UK’s covid and Brexit woes. It’s worth noting that Wednesday’s preliminary PMIs for June and Thursday’s BOE become the week’s key events while Fed Chairman Jerome Powell’s testimony will be important to watch for today’s moves.
GBP/JPY bulls need a clear break of 154.85 to defy the downside risk to retest 100-day SMA near 151.25.
Additional important levels
|Today last price||153.45|
|Today Daily Change||-0.23|
|Today Daily Change %||-0.15%|
|Today daily open||153.68|
|Previous Daily High||153.74|
|Previous Daily Low||151.32|
|Previous Weekly High||155.49|
|Previous Weekly Low||152|
|Previous Monthly High||156.08|
|Previous Monthly Low||150.93|
|Daily Fibonacci 38.2%||152.82|
|Daily Fibonacci 61.8%||152.25|
|Daily Pivot Point S1||152.09|
|Daily Pivot Point S2||150.5|
|Daily Pivot Point S3||149.67|
|Daily Pivot Point R1||154.51|
|Daily Pivot Point R2||155.33|
|Daily Pivot Point R3||156.93|
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.