GBP/JPY remains choppy below 21-DMA amid mixed trade/political signals

  • GBP/JPY clings to 129.30 amid a lack of market reaction to latest headlines.
  • Germany opens the door for Irish backstop alteration before France shuns chances of renegotiation.
  • Risk-on remains in play despite latest geopolitical tension concerning Middle East, North Korea.

With the Brexit uncertainty keep grabbing the headlines, coupled with trade positive news from the US and geopolitical tension concerning the Middle East and North Korea, GBP/JPY trades near 129.30 during the Asian session on Thursday.

While the US President Donald Trump’s trade-positive tweets have helped the risk sentiment to remain firm, North Korea’s worrisome statements for the US military moves and the US Defence Secretary’s comments for the hermit kingdom as well as Iran keep exerting downside pressure on the pair.

In case of the Brexit, the UK Prime Minister (PM) might be happy after his visit to Germany as the EU’s largest economy said the calls to Irish backstop alternation can be accepted if backed by good proposal within 30 days. However, French authorities stand ready to challenge the mood as Reuters said that the French President turned down the request for renegotiation before meeting the UK PM.

On the economic calendar, Japan’s Nikkei Manufacturing PMI for August slipped below 49.8 forecasts to 49.5.

Risk sentiment carries previous strength with the US 10-year Treasury yield marking 1.580% by the press time.

While there prevails no major data scheduled for publishing, investors will keep an eye over British PM’s France visit and opening of the Jackson Hole Symposium for fresh impulse.

Technical Analysis

A 10-day simple moving average (DMA) around 128.50 offers immediate support ahead of dragging the quote to August 12 high near 127.50. On the contrary, 129.65, 21-DMA level of 129.90 and August 02 high of 130.45 can keep the near-term upside limited.

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

Editors’ Picks

EUR/USD turns below 1.10 as market mood eases

EUR/USD has dropped below 1.10 as the market mood improves. Earlier, it hit three-week highs as the stock market crash and rush into bonds is raising the chances of the US Fed cutting rates. Further coronavirus headlines are awaited.


GBP/USD hits new 2020 low amid Brexit rhetoric, coronavirus headlines

GBP/USD has dipped below 1.2850, hitting a new 2020 low as concerns about a no-trade-deal Brexit are weighing on the pound. Coronavirus-linked USD weakness is minimal in this pair.


XAU/USD tumbles near two-week’s lows, sub-$1600/oz

Gold has been dropping sharply this Friday while reaching the 200 SMA on the four-hour chart. XAU/USD bulls gave up as sellers took the market down sharply. The bears seem to be in charge and more down could potentially be expected. 

Gold News

WTI remains under pressure around $45.00

Nothing new around crude oil prices, with rising concerns on the Chinese COVID-19 and its potential impact on the economy and the demand for the commodity keeping traders’ sentiment well depressed.

Oil News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info