- GBP/JPY witnessed heavy selling for the second straight session on Wednesday.
- A strong pickup in demand for the safe-haven JPY exerted pressure on the cross.
- Weaker USD, stronger UK CPI print underpinned the GBP and helped limit losses.
The GBP/JPY cross dropped to near three-week lows, around the 150.85-80 region in the last hour, albeit quickly recovered few pips thereafter.
The cross extended the previous day's dramatic pullback from the 152.85 area, or one-month tops and witnessed heavy selling for the second consecutive session on Wednesday. The downfall was exclusively sponsored by a strong pickup in demand for the safe-haven Japanese yen, though bulls showed some resilience below the 151.00 round-figure mark.
Investors remain worried about the fast-spreading Delta variant of the coronavirus and a global economic slowdown. The concerns were further fueled by disappointing Chinese macro data, which underscored recent signs of slackening economic momentum in the world's second-largest economy. This, in turn, underpinned traditional safe-haven assets.
The JPY, however, trimmed a part of its intraday gains after the Bank of Japan Governor Haruhiko Kuroda showed readiness to further relax monetary policy if necessary. Apart from this, renewed US dollar weakness, along with hotter-than-expected UK CPI figures acted as a tailwind for the British pound and helped limit any further losses for the GBP/JPY cross.
Nevertheless, the overnight sustained break below important horizontal support near mid-151.00s favours bearish traders and supports prospects for a further near-term depreciating move. Hence, it remains to be seen if bulls are able to capitalize on the attempted recovery move or the GBP/JPY cross meets with some fresh supply at higher levels.
Technical levels to watch
|Today last price||151.2|
|Today Daily Change||-0.24|
|Today Daily Change %||-0.16|
|Today daily open||151.44|
|Previous Daily High||152.85|
|Previous Daily Low||151.33|
|Previous Weekly High||152.64|
|Previous Weekly Low||151.42|
|Previous Monthly High||153.32|
|Previous Monthly Low||149.19|
|Daily Fibonacci 38.2%||151.91|
|Daily Fibonacci 61.8%||152.27|
|Daily Pivot Point S1||150.9|
|Daily Pivot Point S2||150.35|
|Daily Pivot Point S3||149.37|
|Daily Pivot Point R1||152.42|
|Daily Pivot Point R2||153.4|
|Daily Pivot Point R3||153.95|
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.