- GBP/JPY looks to post modest daily gains on Tuesday.
- Improving market mood seems to be weighing on JPY.
- Jibun Bank Services PMI will be featured in Japanese economic docket.
The GBP/JPY closed the first day of the week virtually unchanged and stayed relatively quiet during the Asian trading hours on Tuesday. With the market improving modestly, however, the pair gained traction and rose to a daily high of 149.20 during the American session. As of writing, GBP/JPY was up 0.38% on the day at 149.15.
Risk flows help GBP gather strength
Reflecting the positive shift in sentiment, the UK's FTSE 100 Index gained 0.38% on Tuesday. Although Wall Street's main indexes trade little changed, the broad-based USD weakness is helping the GBP/USD pair edge higher and allowing the British pound outperform the JPY as well.
Earlier in the day, the latest Citi/YouGov inflation survey showed that the average expectations for inflation over the next 12 months in the UK edged lower to 2.9% from 3.3% but this report was largely ignored by market participants.
On Wednesday, the Jibun Bank Services PMI for February will be released from Japan ahead of the IHS Markit's Services PMI from the UK. Additionally, British finance minister Rishi Sunak will deliver the budget statement. Nevertheless, the market reaction to these events is likely to remain muted and the risk perception could continue to drive GBP/JPY's movements.
Technical levels to watch for
|Today last price||149.16|
|Today Daily Change||0.52|
|Today Daily Change %||0.35|
|Today daily open||148.64|
|Previous Daily High||149.3|
|Previous Daily Low||148.34|
|Previous Weekly High||150.45|
|Previous Weekly Low||147.41|
|Previous Monthly High||150.45|
|Previous Monthly Low||142.84|
|Daily Fibonacci 38.2%||148.94|
|Daily Fibonacci 61.8%||148.71|
|Daily Pivot Point S1||148.22|
|Daily Pivot Point S2||147.8|
|Daily Pivot Point S3||147.25|
|Daily Pivot Point R1||149.18|
|Daily Pivot Point R2||149.72|
|Daily Pivot Point R3||150.14|
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.