- GBP/JPY remains on the front foot for the third day in a row.
- UK PM Johnson’s guidelines on lockdown offered early-day push to the pair.
- BOJ Summary of Opinions flashes downbeat signals for the Japanese economy.
- Trade/virus flash mixed messages, risk-tone mostly positive.
GBP/JPY takes the bids to 132.74, near the four-day high of 132.79 flashed recently, amid the initial Tokyo session on Monday. The pair earlier cheered UK PM Johnson’s guidelines on lockdown exit while BOJ Summary of Opinions offered the latest push towards the north.
In his guidelines to exit the coronavirus (COVID-19) led lockdown, UK PM Boris Johnson emphasized to restore the working group. He mentioned, “from Monday, those who cannot work from home will be actively encouraged to go to work - but avoid public transport. Also, from Wednesday people will be allowed to take unlimited amounts of outdoor exercise as long as they adhere to social distancing guidelines. It should, however, be noted that the Tory leader also hoped the next step "at the earliest by 1 June" would be for some primary pupils to return to school in England.
Considering the BOJ’s statement concerning Summary of Opinions, policymakers seem to remain worried and cited downside risks for the Asian giant. Though, the policymakers also said that short-term slump blamed on pandemic may not necessarily determine the medium-, long-term path of Japan's economy. Japan's economy likely to improve, see prices pick up once pandemic subsides.
Also read: Japan looks to lift coronavirus emergency in some areas ahead of May 31 deadline
Elsewhere, US President Donald Trump keep alleging China for the virus outbreak while the diplomats from the Trump administration agreed with the Chinese counterpart to communicate and cooperate.
Further, some of the top White House members are self-isolating, not VP Mike Pence as earlier said, which in turn suggests virus spreading in the key US body and may heavy the risks.
Even so, the US 10-year Treasury yields rise 1.5 basis points to 0.696% whereas Japan’ NIKKEI rise over 1.13% to 20,410 by the press time.
Given the lack of major data/events, the pair traders may keep eyes on the trade/virus updates while the start of the EU-UK Brexit talks may also direct near-term moves of the quote.
Technical analysis
A confluence of 21-day and 50-day SMAs near 133.20/30 acts as the near-term key while a three-week-old falling trend line near 130.40, as well as 130.00 round-figure, can limit the pair’s short-term declines.
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.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.