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

Today last price 134.21
Today Daily Change 0.13
Today Daily Change % 0.10%
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



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 pressured below 1.21 amid mixed markets mood

EUR/USD is trading below 1.21, consolidating Friday's losses as the market mood is mixed. Upbeat Chinese GDP and US stimulus are cheering markets while Italy's political crisis and the depressing coronavirus picture is weighing on sentiment. 


GBP/USD fails to recover despite accelerated UK vaccine campaign

GBP/USD remains below 1.36, shrugging off the expansion of Britain's vaccination campaign. Post-Brexit talks on financial services continue while tension is mounting ahead of US President-elect Biden's inauguration. 


Gold struggles to capitalize on intraday bounce, up little around $1930-32

Gold struggled to capitalize on its goodish intraday bounce of nearly $40 and was last seen trading with modest gains, around the $1830-32 region.

Gold news

Forex Today: Dollar holds onto gains, shrugging off upbeat Chinese GDP, vaccine news eyed

Markets are mixed on "Blue Monday" with the dollar clinging to gains related to risk aversion, while upbeat Chinese growth partially offsets the gloom.Tension is mounting ahead of President-elect Biden's inauguration.

Read more

US Dollar Index clinches new 2021 highs near 91.00

The greenback, when measured by the US Dollar Index (DXY), adds to Friday’s gains and moves closer to the key barrier at 91.00 the figure, or new 2021 highs.

US Dollar Index News