GBP/JPY spikes to fresh session tops, lacks follow-through


  • Improving risk sentiment weigh on JPY and led to the initial recovery.
  • The uptick gets a boost following the Tory leadership contest results.
  • Boris Johnson remains a leading candidate and received 114 votes.

 
The GBP/JPY cross built on its steady intraday recovery from one-week lows and jumped to fresh session tops, around the 137.75 region in the last hour.

After an initial dip to the 137.00 neighbourhood, the cross managed to change course and the initial leg of bounce was supported by improving global risk sentiment. A turnaround in the European equity markets undermined the Japanese Yen's relative safe-haven status and helped the cross to bounce off lows.

The intraday recovery got an additional boost, rather picked up the pace after the results of the first ballot for Tory leadership contest showed that the leading candidate Boris Johnson received 114 votes, which makes it pretty sure that he will be a part of the final two standing in the race. 

Despite the latest development, the fact that the UK might still crash out without a deal might keep a lid on any strong follow-through up-move, especially after the European Commission cleared its stance on Tuesday that there will be no Brexit renegotiation even with a new UK Prime Minister.

Hence, it would be prudent to wait for a sustained breakthrough weekly swing high resistance, near the 138.25-30 region, before traders start positioning for an extension of the pair's recent recovery from multi-month lows set earlier this June.

Technical levels to watch

GBP/JPY

Overview
Today last price 137.74
Today Daily Change 0.05
Today Daily Change % 0.04
Today daily open 137.69
 
Trends
Daily SMA20 138.47
Daily SMA50 142.21
Daily SMA100 143.59
Daily SMA200 144.01
Levels
Previous Daily High 138.25
Previous Daily Low 137.55
Previous Weekly High 138.17
Previous Weekly Low 136.54
Previous Monthly High 146.52
Previous Monthly Low 136.63
Daily Fibonacci 38.2% 137.82
Daily Fibonacci 61.8% 137.98
Daily Pivot Point S1 137.41
Daily Pivot Point S2 137.13
Daily Pivot Point S3 136.71
Daily Pivot Point R1 138.11
Daily Pivot Point R2 138.53
Daily Pivot Point R3 138.81

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD bouncing modestly on disappointing US Consumer Confidence

The shared currency remains pressured by the idea that the ECB will come out with massive stimulus measures in September. US Michigan Consumer Confidence down to 92.1 brakes dollar's gains.

EUR/USD News

GBP/USD retreats sharply after approaching 1.2200

The GBP/USD pair came under selling pressure after flirting with weekly highs, as a dismal US confidence report brought back risk-off. GBP/USD still up for the week and above the critical 1.2100 level.

GBP/USD News

USD/JPY: Greenback makes modest progress against Yen, near 106.30

The demand for Yen as a safe-haven currency has been weak in the last three days. The levels to beat for bulls are at the 106.30 and 106.55 resistances.

USD/JPY News

Gold gives back territory towards a 23.6% retracement

Gold prices were a touch lower by the end of the week, falling -0.68% having travelled between a high of $1,528.00 to a low of $1,503.87, ending the NY session around $1,513. 

Gold News

Four Signs of A Bear Market

I am a believer that the Universe gives you signs. That may sound a bit crazy, but these three charts are three more signs of a bear market. The top chart is the GLD exchange traded fund.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •