GBP/JPY flits with session tops, 151.00 mark remains in sight

GBP/JPY staged a goodish rebound from the lowest level since July 21 set earlier this Wednesday.
Worries that job losses in the UK will rise after the furlough scheme ends might cap gains for the GBP.
COVID-19 jitters and a softer risk tone could benefit the safe-haven JPY and also act as a headwind.

Haresh Menghani FXStreet

The GBP/JPY cross maintained its bid tone through the first half of the European session and was last seen hovering near daily tops, around the 150.80-85 region.

A combination of factors assisted the GBP/JPY cross to rebound from the 150.30 region, or four-week lows touched earlier this Wednesday and recover a part of the previous day's losses. The Japanese yen was pressured by an extension of the stage of emergency in Tokyo and seven more prefectures. Apart from this, a modest short-covering move around the British pound provided an additional boost to the cross.

The cross, for now, seems to have snapped four consecutive days of the losing streak, though any meaningful recovery still seems elusive. Investors remain worried that the fast-spreading Delta variant of the coronavirus could derail the global economic recovery. This, along with political tensions in Afghanistan, continued weighing on investors' sentiment. This, in turn, should act as a tailwind for the safe-haven JPY.

On the other hand, worries that job losses in the UK will rise after the furlough scheme ends in September and Wednesday's softer UK consumer inflation figures for July could undermine the sterling. This might further collaborate towards capping the upside for the GBP/JPY cross, at least for now. Hence, it will be prudent to wait for some strong follow-through buying before confirming that the cross has bottomed out.

Technical levels to watch

GBP/JPY

Overview
Today last price	150.84
Today Daily Change	0.25
Today Daily Change %	0.17
Today daily open	150.59

Trends
Daily SMA20	152.23
Daily SMA50	152.86
Daily SMA100	152.77
Daily SMA200	148.17

Levels
Previous Daily High	151.34
Previous Daily Low	150.35
Previous Weekly High	153.32
Previous Weekly Low	151.93
Previous Monthly High	154.08
Previous Monthly Low	148.46
Daily Fibonacci 38.2%	150.73
Daily Fibonacci 61.8%	150.97
Daily Pivot Point S1	150.18
Daily Pivot Point S2	149.77
Daily Pivot Point S3	149.19
Daily Pivot Point R1	151.17
Daily Pivot Point R2	151.75
Daily Pivot Point R3	152.16

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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