GBP/JPY flirts with two-week lows, risks breaking below 154.00 mark

  • GBP/JPY added to the overnight losses and witnessed heavy selling for the second straight day.
  • Brexit jitters, COVID-19 woes acted as a headwind for the sterling and exerted some pressure.
  • Sustained weakness below mid-154.00s might have already set the stage for additional losses.

The offered tone surrounding the British pound dragged the GBP/JPY cross to two-week lows, around the 154.15-10 region during the first half of the European session.

The cross extended the previous day's sharp pullback from the 155.30 region, or weekly tops and witnessed some follow-through selling for the second consecutive session on Thursday. The downfall was sponsored by the emergence of some heavy selling around the sterling and pushed the GBP/JPY cross further away from multi-year tops, around the 156.00 mark touched in May.

The EU-UK collision over Norther Ireland protocol, along with coronavirus jitters acted as a headwind for the GBP. The European Union warned of swift and firm action if the UK fails to implement its post-Brexit obligations. There are also speculations that the UK may delay plans to end restrictions fully on June 21 in light of the spread of the so-called Delta variant.

The combination of factors overshadowed the overnight comments by the Bank of England Chief Economist, Andy Haldane, saying that the central bank might need to turn off the tap of its huge monetary stimulus. Adding to this, the prevalent cautious mood benefitted the safe-haven Japanese yen and further contributed to the ongoing decline to the lowest level since May 27.

With the latest led down, the GBP/JPY cross now seems to have confirmed a bearish break below horizontal support near mid-154.00. A subsequent fall below the 154.00 round figure will reaffirm the negative bias in the absence of any major market-moving economic releases. This, in turn, will set the stage for an extension of the near-term depreciating move.

Technical levels to watch


Today last price 154.31
Today Daily Change -0.50
Today Daily Change % -0.32
Today daily open 154.81
Daily SMA20 154.74
Daily SMA50 152.73
Daily SMA100 150.22
Daily SMA200 144.17
Previous Daily High 155.32
Previous Daily Low 154.48
Previous Weekly High 155.94
Previous Weekly Low 154.82
Previous Monthly High 156.08
Previous Monthly Low 150.93
Daily Fibonacci 38.2% 154.8
Daily Fibonacci 61.8% 155
Daily Pivot Point S1 154.42
Daily Pivot Point S2 154.04
Daily Pivot Point S3 153.59
Daily Pivot Point R1 155.26
Daily Pivot Point R2 155.71
Daily Pivot Point R3 156.09



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

GME stock positioned for another short squeeze

Get the full analysis and chart in our Insights. Upgrade to Premium today    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD looks depressed below 1.2200 ahead of ECB, US inflation

EUR/USD remains on the back foot below 1.2200 ahead of a busy docket. The US dollar shrugs off weaker Treasury yields. The ECB eyed for economic outlook. The US CPI needs stronger-than-forecast print to keep the dollar afloat.


GBP/USD remains poised to drop below 1.4100, US CPI eyed

GBP/USD treads water above 1.4100 ahead of the London open. The US dollar remains steady and exerts pressure on the pair. Brexit concerns, Delta strain added to the British pound struggle. US inflation awaited.


XAU/USD off lows, not out of the woods yet ahead of US inflation

Gold price is attempting a minor bounce, having witnessed a steep drop following a break below the critical 21-DMA support at 1883. At the time of writing, gold price is trading 0.50% lower at $1880, looking to recapture the 21-DMA.

Gold News

Three reasons why Shiba Inu price may be ready to rally

Shiba Inu price decline has not been matched by increasing volume, suggesting it is not token specific. ShibaSwap decentralized cryptocurrency exchange (DEX) in testing mode, to be released to the public soon. Social volume stabilizes during another period of price weakness. 

Read more

US CPI May Preview: Inflation angst is coming

When the Federal Reserve moved its price measurement to inflation averaging last September the governors were carefully insulating rate policy from this year’s expected acceleration in consumer costs. 

Read more