• GBP/JPY faced rejection near the 151.00 mark and retreated nearly 100 pips from multi-day tops.
  • Worries about the fast-spreading Delta variant benefitted the safe-haven JPY and exerted pressure.
  • The sharp pullback suggests that the recent bounce from one-month lows might have lost steam.

The GBP/JPY cross refreshed daily lows heading into the North American session, with bears now eyeing a sustained break below the key 150.00 psychological mark.

The cross built on the previous day's strong positive move and witnessed some follow-through buying through the first half of the trading action on Tuesday. The momentum pushed the GBP/JPY cross to multi-day tops, though bulls struggled to capitalize on the move and faced rejection near the 151.00 mark.

The markets remain worried about the fast-spreading Delta variant of the coronavirus and its impact on the global economic recovery. This, in turn, acted as a tailwind for traditional safe-haven currencies, including the Japanese yen, which was seen as a key factor that prompted fresh selling around the GBP/JPY cross.

Meanwhile, reviving safe-haven demand provided a modest lift to the US dollar and exerted pressure on the British pound. This further contributed to the GBP/JPY pair's intraday pullback of nearly 100 pips. With the latest leg down, the cross has now stalled its recent bounce from one-month lows touched last Friday.

In the absence of any major market-moving economic releases, developments surrounding the coronavirus saga will continue to play a key role in driving the broader market risk sentiment. This will influence demand for the safe-haven JPY and produce some short-term trading opportunities around the GBP/JPY cross.

Technical levels to watch

GBP/JPY

Overview
Today last price 150.19
Today Daily Change -0.31
Today Daily Change % -0.21
Today daily open 150.5
 
Trends
Daily SMA20 151.9
Daily SMA50 152.48
Daily SMA100 152.66
Daily SMA200 148.41
 
Levels
Previous Daily High 150.76
Previous Daily Low 149.4
Previous Weekly High 152.21
Previous Weekly Low 149.19
Previous Monthly High 154.08
Previous Monthly Low 148.46
Daily Fibonacci 38.2% 150.24
Daily Fibonacci 61.8% 149.92
Daily Pivot Point S1 149.67
Daily Pivot Point S2 148.85
Daily Pivot Point S3 148.31
Daily Pivot Point R1 151.04
Daily Pivot Point R2 151.59
Daily Pivot Point R3 152.41

 

 

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