GBP/JPY retreats from over one-week tops, still well bid around 153.70-75 area


  • GBP/JPY gained positive traction for the second straight day and shot to over one week tops.
  • The optimism over the easing of COVID-19 restrictions in the UK underpinned the British pound.
  • Concerns about the Delta variant of the COVID-19 benefitted the safe-haven JPY and capped gains.

The GBP/JPY cross shot to over one-week tops during the early European session, albeit quickly retreated few pips thereafter and was last seen trading around the 153.75-70 region.

The cross added to the previous day's modest gains and scaled higher for the second consecutive session on Tuesday. The latest optimism over the final step of lifting lockdown in the UK continued acting as a tailwind for the British pound. This, in turn, was seen as a key factor that provided a goodish lift to the GBP/JPY cross.

On Monday, Johnson announced that all restrictive measures would be lifted on July 19, including regulations mandating face masks and social distancing rules. Johnson further added that people will no longer be instructed to work from home and that there will be no limits on how many people can meet socially, or where they can meet.

Bulls, however, struggled to capitalize on the move or find acceptance above the 154.00 mark amid a modest pickup in demand for the Japanese yen. A softer tone surrounding the US dollar, along with concerns about the spread of the highly contagious Delta variant of the coronavirus, benefitted the safe-haven JPY and capped gains for the GBP/JPY cross.

The pair has now retreated around 35-40 pips from daily swing highs as market participants now look forward to the release of the UK Construction PMI for some impetus. Apart from this, the development surrounding the coronavirus saga will influence 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 153.74
Today Daily Change 0.13
Today Daily Change % 0.08
Today daily open 153.61
 
Trends
Daily SMA20 154.11
Daily SMA50 153.86
Daily SMA100 152.07
Daily SMA200 145.76
 
Levels
Previous Daily High 153.76
Previous Daily Low 153.35
Previous Weekly High 154.23
Previous Weekly Low 152.62
Previous Monthly High 155.94
Previous Monthly Low 151.32
Daily Fibonacci 38.2% 153.5
Daily Fibonacci 61.8% 153.6
Daily Pivot Point S1 153.39
Daily Pivot Point S2 153.16
Daily Pivot Point S3 152.98
Daily Pivot Point R1 153.79
Daily Pivot Point R2 153.98
Daily Pivot Point R3 154.2

 

 

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Indecisive above 1.1700 as Fed tapering looms

EUR/USD retreats towards 1.1700, teasing monthly low for third straight day. Market sentiment improves over Evergrande, US debt limit extension. ECB policymakers cite inflation risks. Fed remains in focus, as it is expected to provide hints on tapering timing.

EUR/USD News

GBP/USD remains defensive near 1.3650 amid steady USD, Fed eyed

GBP/USD trades virtually unchanged around 1.3650 following the footprint of the previous session. Supply-chain bottlenecks, higher gas prices limited gains for sterling. US dollar remains elevated near 92.30 ahead of the Fed decision.

GBP/USD News

Gold sees elusive recovery toward $1,780, Fed eyed

Gold prices print minute gains on Wednesday and lack conviction to break $1,780 convincingly due to a sudden uptick in the greenback following a show from the Bank of Japan (BOJ). FOMC volatility, improved risk sentiment exert pressure on the higher side.

Gold News

MATIC price at make or break point as Polygon launches $2 million bounty program

MATIC price has experienced a massive downswing over the past four days and seems to have found temporary relief. If the buyers step in, there is a chance of a minor rally, but failing to do so might trigger a further descent.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question investors have for the Federal Reserve in its all-important September meeting. The bank buys $120 billion worth of bonds every month and it is set to reduce the pace at some point.

Read more

Forex MAJORS

Cryptocurrencies

Signatures