GBP/JPY Price Analysis: Pound limited below trendline resistance at 131.85

GBP/JPY remains biased lower capped below trendline resistance at 131.85.
The pound remains bid with the yen favoured by global risk aversion.

Guillermo Alcala FXStreet

The sterling remains trading on a bid tone against the Japanese yen, set for a three-day losing streak, unable to stretch above trendline resistance from April 30 highs, now at 131.85 area.

GBP/JPY’s upside attempt from 129.29 lows witnessed earlier this week found resistance at the 50-day SMA, near 132.40, and the pair has kept the bearish trend intact, with the pound weaker against the safe haven-yen as the grim UK macroeconomic data added concerns to the looming Brexit uncertainty.

The pair should break above the mentioned trendline, now around 131.85 and the 50-day SMA, at 132.30 area to ease negative pressure which might increase confidence for buyers, to reach May 11 highs at 133.20.

On the downside, immediate support lies at 130.65 (May 22 low) and below here, 129.45 (23,6% retracement of the Feb.-Mar. decline) and 127.45 (Mar. 23 lows).

GBP/JPY daily chart

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

EUR/USD stabilizes near 1.1800 as markets focus on geopolitics

EUR/USD stays defensive around 1.1800 in the second half of the day on Thursday. The US Dollar stabilizes, following the recent decline led by tariff uncertainty, capping the pair's upside. All eyes now remain on the US-Iran nuclear talks after ECB President Lagarde's testimony failed to impress Euro bulls.

GBP/USD holds above 1.3500, struggles to gain traction

GBP/USD rebound from session lows but stays below 1.3550 on Thursday. The cautious market stance helps the US Dollar stay resilient against its rivals and makes it difficult for the pair gather recovery momentum. Investors await headlines that will come out of the US-Iran nuclear talks.

Gold clings to small gains near $5,200 ahead of US-Iran talks

Gold trades marginally higher on the day above $5,150 on Thursday as investors refrain from taking large positions. The US and Iran will hold the next round of nuclear talks in Geneva on Thursday, outcome of which could have significant implications for risk perception.

Stellar: Relief bounce fades as bearish undertone persists

Stellar is trading around $0.16 at the time of writing on Thursday after rebounding more than 8% in the previous day. Derivatives data paints a negative picture as XLM’s short bets hit a monthly high while Open Interest continues to decline.

The one thing everyone is on the lookout for is US action of some sort against Iran

The FX market is minestrone soup these days. It is befuddled by conflicting data, rumors and small stories exaggerated out of proportion, and Trump-generated uncertainty.

Solana strikes key resistance with double-digit gains

Solana trades at $88 at press time on Thursday, after an 11% upswing the previous day within a broader consolidation range of roughly three weeks. Institutional demand for Solana heightens as US spot SOL Exchange Traded Funds record $30 million of inflow on Wednesday.