GBP/JPY holds weaker near multi-month lows ahead of Tory leadership contest, Carney’s speech

  • No-deal Brexit fears continue to dent sentiment surrounding the British Pound.
  • A turnaround in risk sentiment undermines JPY and helped ease the pressure.
  • The second round of Tory leadership contest remains in the spotlight on Tuesday.

 The GBP/JPY cross now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow trading band just above mid-135.00s, or 5-1/2 month lows.

The cross extended last week's rejection slide from the 138.25-35 supply zone and remained under some heavy selling pressure for the fifth consecutive session on Tuesday - also marking its sixth day of the negative move in the previous seven.

Given that hardline Brexiteer Boris Johnson is still seen as a leading candidate to be Britain's next Prime Minister, sentiment surrounding the British Pound remains fragile amid rising fears of a no-deal Brexit and kept exerting some pressure on the cross.
Adding to this reports that the UK Chancellor of the Exchequer (Finance Minister) Hammond is prepared to resign due to his disagreement over the Prime Minster May's spending plans further dented the already weaker sentiment.

Meanwhile, a sudden turnaround in the risk sentiment, as depicted by a solid bounce in the European equity market following Draghi’s dovish comments on Tuesday, undermined the Japanese Yen’s safe-haven demand and helped limit further losses.

Investors also seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of the second round of voting for the Tory leadership and the BoE Governor Mark Carney’s scheduled speech at the ECB Forum on Central Banking in Sintra later this Tuesday.

Technical levels to watch


Today last price 135.71
Today Daily Change -0.34
Today Daily Change % -0.25
Today daily open 136.05
Daily SMA20 137.94
Daily SMA50 141.67
Daily SMA100 143.37
Daily SMA200 143.9
Previous Daily High 136.94
Previous Daily Low 136
Previous Weekly High 138.33
Previous Weekly Low 136.51
Previous Monthly High 146.52
Previous Monthly Low 136.63
Daily Fibonacci 38.2% 136.36
Daily Fibonacci 61.8% 136.58
Daily Pivot Point S1 135.72
Daily Pivot Point S2 135.39
Daily Pivot Point S3 134.78
Daily Pivot Point R1 136.66
Daily Pivot Point R2 137.27
Daily Pivot Point R3 137.6



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD falls below 1.1850 as US consumer sentiment beats

EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.


GBP/USD falls as the EU reportedly objects Johnson's bill

GBP/USD is trading around 1.2950, off the highs. According to reports, the EU remains opposed to UK PM Johnson's controversial bill, which violates the Brexit accord. 


XAU/USD struggles to move back above 100-hour SMA

Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.

Gold News

Ethereum hits Bitcoin's bid to lead the market

Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.

Read more

After yesterday's JMMC meeting WTI settles near $40 per barrel

WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December. 

Oil News