GBP/JPY falls 0.30% as Asian stocks drop on virus concerns

  • GBP/JPY drops to 134.75, having faced rejection near 136.00 on Thursday. 
  • Coronavirus concerns and stock market losses push the anti-risk yen higher.

GBP/JPY fell 0.30% during Friday's Asian trading hours to 134.75, extending the pullback from Thursday's high of 135.92, as losses in the Asian equity markets strengthened the bid tone around the anti-risk Japanese yen. 

Asian stocks declined with the Shanghai Composite losing 1% of its value as record deaths in Florida and California put the focus on the resurgence of the coronavirus in the US and across the world and squashed optimism fueled by the gradual reopening of economies. 

Additional uncertainty stemmed from the US Supreme Court's ruling that President Trump cannot hide his tax information and the US decision to impose sanctions on Chinese officials allegedly involved in human rights violations in the Muslim-dominated Uighur province.

From a technical analysis standpoint, the pair's drop to 134.75 put the bears back into the driver's seat. The losses validated the inverted bearish hammer candle created on Thursday, marking an end of the corrective rally from lows near 131.75 seen on June 22. 

The bias would turn bullish if the pair finds acceptance above 135.92, although that may remain elusive as long as markets remain risk-averse. 

Technical levels


Today last price 134.75
Today Daily Change -0.40
Today Daily Change % -0.30
Today daily open 135.15
Daily SMA20 133.85
Daily SMA50 133.51
Daily SMA100 134
Daily SMA200 137.65
Previous Daily High 135.92
Previous Daily Low 135.05
Previous Weekly High 134.71
Previous Weekly Low 131.96
Previous Monthly High 139.74
Previous Monthly Low 131.77
Daily Fibonacci 38.2% 135.39
Daily Fibonacci 61.8% 135.59
Daily Pivot Point S1 134.83
Daily Pivot Point S2 134.51
Daily Pivot Point S3 133.96
Daily Pivot Point R1 135.7
Daily Pivot Point R2 136.24
Daily Pivot Point R3 136.57



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