GBP/JPY jumps to 3-week tops, bulls eyeing a move beyond 135.00 mark

  • GBP/JPY gains strong positive traction on Tuesday and breaks through a three-day-old trading range.
  • The JPY struggled to attract any safe-haven flows despite concerns about a surge in COVID-19 cases.
  • A bout of short-covering provided a modest lift to the GBP and remained supportive of the move up.

The GBP/JPY cross added to its intraday gains and jumped to near three-week tops, closer to the key 135.00 psychological mark during the mid-European session.

The cross caught some fresh bids on Tuesday and finally seems to have confirmed a bullish breakthrough a three-day-old trading range. The momentum was supported by an offered tone surrounding the Japanese yen (JPY) and got an additional boost from a sudden pickup in demand for the British pound (GBP).

The JPY struggled to attract any safe-haven flows despite growing worries about the second wave of the coronavirus infections. This, in turn, fueled fears over renewed lockdown measures and dampened prospects for a V-shaped economic recovery. The market concerns were evident from a fresh leg down in the equity markets.

On the other hand, the GBP managed to regain traction on the back of some intraday short-covering and seemed rather unaffected by persistent Brexit uncertainties. Apart from this, the GBP/JPY pair's strong positive move lacked any fundamental catalyst, warranting some caution before placing fresh bullish bets.

Moving ahead, Tuesday's key focus will remain on the resumption of the post-Brexit talks between the UK and EU negotiating teams. The incoming Brexit-related headlines will play a key role in influencing the sentiment surrounding the sterling and produce some meaningful trading opportunities around the GBP/JPY cross.

Technical levels to watch


Today last price 134.88
Today Daily Change 0.80
Today Daily Change % 0.60
Today daily open 134.08
Daily SMA20 134
Daily SMA50 133.42
Daily SMA100 134.26
Daily SMA200 137.61
Previous Daily High 134.68
Previous Daily Low 134.03
Previous Weekly High 134.71
Previous Weekly Low 131.96
Previous Monthly High 139.74
Previous Monthly Low 131.77
Daily Fibonacci 38.2% 134.27
Daily Fibonacci 61.8% 134.43
Daily Pivot Point S1 133.84
Daily Pivot Point S2 133.61
Daily Pivot Point S3 133.2
Daily Pivot Point R1 134.49
Daily Pivot Point R2 134.91
Daily Pivot Point R3 135.14



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