- GBP/JPY continued scaling higher for the fourth consecutive session on Friday.
- The risk-on impulse undermined the safe-haven JPY and remained supportive.
- Brexit woes, softer UK macro data might hold bulls from placing aggressive bets.
The GBP/JPY cross shot to fresh weekly tops during the mid-European session, with bulls now looking to extend the momentum further beyond the 152.00 mark.
The cross caught some fresh bids on the last day of the week and built on its recent strong rebound from the 148.45 region, or the lowest level since March touched on Tuesday. The risk-on impulse in the markets undermined demand for the safe-haven Japanese yen and pushed the GBP/JPY cross higher for the fourth consecutive session.
Investors now seemed to have set aside worries about the potential economic fallout from the fast-spreading Delta variant of the coronavirus. This was evident from a generally positive tone around the equity markets, which, in turn, acted as a headwind for traditional safe-haven currencies, including the Japanese yen.
The intraday positive move seemed rather unaffected by concerns about the EU-UK impasse over the Northern Ireland Protocol of the Brexit deal. This, along with the resurgence of COVID-19 infections in the UK, might hold traders from placing aggressive bullish bets and cap any further gains for the GBP/JPY cross.
Bulls even shrugged off Friday's mixed UK Retail Sales figures for June and disappointing July PMI prints (Manufacturing and Services). Nevertheless, the cross remains on track to end the week on a positive note, snapping three straight weeks of the losing streak.
Technical levels to watch
|Today last price||152.15|
|Today Daily Change||0.54|
|Today Daily Change %||0.36|
|Today daily open||151.61|
|Previous Daily High||151.91|
|Previous Daily Low||150.74|
|Previous Weekly High||153.49|
|Previous Weekly Low||151.43|
|Previous Monthly High||155.94|
|Previous Monthly Low||151.32|
|Daily Fibonacci 38.2%||151.47|
|Daily Fibonacci 61.8%||151.19|
|Daily Pivot Point S1||150.93|
|Daily Pivot Point S2||150.25|
|Daily Pivot Point S3||149.76|
|Daily Pivot Point R1||152.1|
|Daily Pivot Point R2||152.59|
|Daily Pivot Point R3||153.27|
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.