• The Japanese Yen remains underpinned despite improving risk-sentiment.
• Brexit uncertainties hold GBP bulls from placing aggressive bullish bets.
• Focus remains on the upcoming UK parliament debate on May’s Brexit deal.
The GBP/JPY cross seesawed between tepid gains/minor losses and extended its sideways consolidative price action through the mid-European trading session.
The cross struggled to build on Friday's strong follow-through recovery move from 14-month lows set in the previous session and remained confined within a broader trading range around the 138.00 handle.
Despite improving risk appetite, concerns over a sharp global economic slowdown continued underpinning the Japanese Yen's safe-haven demand and turned out to be one of the key factors capping gains.
Meanwhile, the GBP bulls now held back from placing any aggressive bids ahead of the upcoming UK Parliament debate on the PM May's Brexit deal, set to resume this Wednesday, and the meaningful vote next week.
Adding to this, absent relevant market moving economic releases from the UK also failed to provide any meaningful impetus and further collaborated to the pair's lacklustre/subdued price action on the first trading day of the week.
Hence, it would be prudent to wait for a strong follow-through buying before confirming that the cross might have actually bottomed out and traders start positioning for any further near-term appreciating move.
Technical levels to watch
GBP/JPY
Overview:
Today Last Price: 138.17
Today Daily change: 1.0 pips
Today Daily change %: 0.00724%
Today Daily Open: 138.16
Trends:
Previous Daily SMA20: 140.71
Previous Daily SMA50: 143.63
Previous Daily SMA100: 144.82
Previous Daily SMA200: 146.09
Levels:
Previous Daily High: 138.31
Previous Daily Low: 135.8
Previous Weekly High: 140.89
Previous Weekly Low: 131.79
Previous Monthly High: 145.52
Previous Monthly Low: 138.86
Previous Daily Fibonacci 38.2%: 137.35
Previous Daily Fibonacci 61.8%: 136.76
Previous Daily Pivot Point S1: 136.53
Previous Daily Pivot Point S2: 134.91
Previous Daily Pivot Point S3: 134.02
Previous Daily Pivot Point R1: 139.04
Previous Daily Pivot Point R2: 139.93
Previous Daily Pivot Point R3: 141.55
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.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.