GBP/JPY prints mild gains above 134.00 amid upbeat trading sentiment


  • GBP/JPY defies the previous day’s losses while taking a U-turn from 134.05.
  • Ireland expects Brexit deal in October, Germany’s Merkel less likely to help.
  • China attacks the UK over the Huawei ban, Russia dislikes the first independent British sanctions for human rights violations.
  • BOE’s Bailey postpones meeting with Tory policymakers as UK Chancellor Sunak is ready to step forward in combating the coronavirus.

GBP/JPY eases from intraday high of 134.32 to 134.18, up 0.08% on a day, during the early Tuesday in Asia. The quote recently gained upside momentum after market sentiment extended the previous day’s positivity. Even so, fears of the coronavirus (COVID-19) outbreak and Brexit talks, not to forget global fight against China, keep the optimism guarded.

With no fresh virus cases from Beijing, the first time since June 11, global markets escalated the earlier risk-on mood. Also supporting the upbeat trading environment could be the expectations of further stimulus from the UK’s Chancellor Rishi Sunak during his Wednesday’s speech. Additionally, Global Times’ (GT) news suggesting China’s vaccine heading for the third trial in Brazil also favored the bulls.

On the contrary, the US pandemic data suggests a daily rise of 2.0% on Monday versus the seven-day average of 1.8%. Further, the UK’s sanctions on major Russian and Saudi Arabian diplomats over the human rights violations get a bitter response from Moscow whereas China criticized British PM Boris Johnson over the ban on Huawei. Additionally, the EU-US trade tussle and the Sino-America tension are some extra points that question the present risk-on momentum.

While portraying the mood, the US 10-year Treasury yields seesaw around 0.68% but the S&P 500 Futures gain 0.20% to 3,179. Moving on, Japan’s Nikkei 225 drops 0.33% to 22,640 as virus figures from Tokyo rose above 100, to 106, for the fifth day in a row.

Looking forward, the Brexit talks between the European Union (EU) and the UK diplomats in London become the key to watch following the abrupt end of talks in Brussels during the last week. Although the Irish policymaker Simon Coveney suggests a trade deal by October, the UK express relies on the German news newspaper Augsburger Allgemeine to claim that such a view is a “misconception” and warns the country will not be the EU’s weak point.

Other than the Brexit headlines, preliminary readings of Japan’s May month Leading Economic Index, expected 73.2 versus 77.7 prior, could entertain the traders. It’s worth mentioning that virus updates and geopolitical headlines will also be the key to watch.

Technical analysis

A clear break of 100-day SMA level near 134.20 will need to be validated by Thursday’s top of 134.70 for a confirmation of further upside.

Additional important levels

Overview
Today last price 134.21
Today Daily Change 0.13
Today Daily Change % 0.10%
Today daily open 134.08
 
Trends
Daily SMA20 134
Daily SMA50 133.42
Daily SMA100 134.26
Daily SMA200 137.61
 
Levels
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

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD extends slide on hawkish Powell comments, trades below 1.1250

EUR/USD extended its daily slide during FOMC Chairman Powell's press conference and fell to its lowest level in more than a month below 1.1250. Reflecting the renewed dollar strength, the US Dollar Index is up more than 0.5% on a daily basis at 96.50.

EUR/USD News

GBP/USD drops below 1.3500 on renewed dollar strength

GBP/USD lost its traction and fell into the negative territory below 1.3500. The greenback seems to be capitalizing on FOMC Chairman Jerome Powell's hawkish remarks, causing the pair to continue to edge lower. 

GBP/USD News

Gold bears sink their teeth into the market on hawkish Powell pivot

At $1,817.59, gold is moving towards the close and down some 1.65% after falling from a $1,850.11 high to test a low of $1,814.98. The drop came on the back of a hawkish twist at the Federal Reserve event on Wednesday.

Gold News

Cryptos to enjoy 20% upswing

BTC generated a significant amount of buying during the early NY trading session, pushing higher by more than 5%. Likewise, ETH has rallied over 24% from the weekly lows. XRP continues to lag BTC and ETH in performance, but a rally of its own is likely to develop very soon.

Read more

Tesla (TSLA) Q4 earnings beat but shares drop 6%

Tesla (TSLA) reported earnings for Q4 after the close on Wednesday. Earnings per share came in at $2.54 versus the average estimate of $2.26. Revenue was $17.72 billion versus estimates for $16.35 billion.

Read more

Forex MAJORS

Cryptocurrencies

Signatures