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.

Haresh Menghani FXStreet

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

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold hangs near one-week low; looks to FOMC Minutes for fresh impetus

Gold is consolidating just above the $4,850 level, having touched a one-week low on Tuesday, amid mixed cues. Signs of progress in US–Iran talks dent demand for the traditional safe-haven bullion. Meanwhile, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders also seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.