GBP/JPY: Steady around 152.00 despite Brexit, coronavirus woes, BOJ eyed

  • GBP/JPY fluctuates near weekly low after three-day downtrend.
  • Britain sees £3.5 billion gap on Brexit divorce bill, EU’s von der Leyen to visit Northern Ireland over protocol issue.
  • UK PM Johnson backs July 19 unlock despite six-month high infections, Tokyo’s daily count jumps to January levels.
  • BOJ is expected to keep monetary policy unchanged, economic outlook becomes the key.

GBP/JPY bears take a breather around 152.00, up 0.05% intraday near 151.90 by the press time of Friday’s Asian session. The cross-currency pair dropped for three consecutive days the last as the market’s risk-off mood put a safe-haven bid under the Japanese yen (JPY).

Trading sentiment remains downbeat as the virus concerns keep poking the optimism. The UK marked over 50,000 cases to refresh, unfortunately, the highest infections since January whereas Tokyo also registered 1,308 cases, per Kyodo News, to revisit the January 21 highs. Even so, UK PM Boris Johnson said, per Independent, that it was "highly probable" the worst of the pandemic is over.

Other than covid concerns, Brexit woes also weigh on the GBP/JPY prices. While looming doubts over the Northern Ireland (NI) protocol and fishing are yet to be solved, the UK diplomats’ calculation of post-Brexit financial settlement’s present value surrounding £37.3 billion raises another tussle between the European Union (EU) and the UK. It should be noted that the European Commission President Ursula von der Leyen will travel to Dublin on Friday and meet Irish Taoiseach Micheál Martin to discuss many issues including NI protocol. It's worth mentioning that a story from The Times, signaling UK PM Johnson's support to a new tax system to pay for reforms in the social cares add to the pair traders worries.

Furthermore, the fresh US-China tension and the pair traders’ cautious sentiment during the pre-BOJ period also weigh on the quote. Recently, Reuters signaled new US sanctions on Chinese diplomats whereas the Financial Times (FT) cited Beijing’s rejection of the Sino-American diplomat’s meeting to highlight the Sino-American tussles.

Alternatively, the UK’s House of Lord’s push to the Bank of England (BOE) to tame the inflation, per FT news, seems to put a limit under the lows.

On the data front, UK registered a higher Unemployment Rate for three months to May and a slower reduction in the Claimant Count Change the previous day. Before that, inflation figures did favor the need for hawkish BOE.

Amid these plays, stock futures and US Treasury yields remain pressured by the press time.

Hence, GBP/JPY traders will keep their eyes on the Bank of Japan (BOJ) meeting for fresh impulse but the risk catalysts are the key to watch. The BOJ’s likely status-quo requires the pair buyers to watch details of the economic outlook for extra support.

Read: BOJ Preview: Yen has room to (temporarily) fall on downgraded outlook, worrying virus state

Technical analysis

Although sluggish RSI and an upward sloping Momentum line suggest a corrective pullback of the GBP/JPY prices, 100-DMA level of 152.46 becomes a nearby key hurdle to watch. Alternatively, a descending trend line from June 21, near 150.40, can lure the pair sellers.

Additional important levels

Today last price 151.99
Today Daily Change 0.09
Today Daily Change % 0.06%
Today daily open 151.9
Daily SMA20 153.21
Daily SMA50 154.01
Daily SMA100 152.43
Daily SMA200 146.41
Previous Daily High 152.8
Previous Daily Low 151.61
Previous Weekly High 154.08
Previous Weekly Low 150.67
Previous Monthly High 155.94
Previous Monthly Low 151.32
Daily Fibonacci 38.2% 152.07
Daily Fibonacci 61.8% 152.35
Daily Pivot Point S1 151.4
Daily Pivot Point S2 150.91
Daily Pivot Point S3 150.21
Daily Pivot Point R1 152.6
Daily Pivot Point R2 153.3
Daily Pivot Point R3 153.79



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 bulls hang in there in slower pace Asia, Evergrande digested

EUR/USD is flat in a quiet Asian session following a turbulent start to the week. At the time of writing, EUR/USD is trading at 1.1728 between 1.1725 and 1.1731. Forex markets were quite contained given the scale of equity losses on the back of the Evergrande news. 


GBP/USD: Upside needs validation above 1.3670

GBP/USD takes a breather after the previous session’s heavy sell-off. The pair dropped below 1.3650 in a more than 100-pips movement. At the time of writing, GBP/USD is trading at 1.3660, up 0.03% for the day.


EUR/USD bulls hang in there in slower pace Asia, Evergrande digested

EUR/USD is flat in a quiet Asian session following a turbulent start to the week. At the time of writing, EUR/USD is trading at 1.1728 between 1.1725 and 1.1731. Forex markets were quite contained given the scale of equity losses on the back of the Evergrande news. 


Solana bulls panic selling could push SOL price sub -$100

Solana price makes new fourteen-day lows. Solana price has been on one wild ride since Friday. Major whipsaws in price action have generated uncertainty on both sides of the market. Bulls are likely trapped between $150 and $171.

Read more

Trudeau wins third term as Canada’s Prime Minister but without a majority – CTV projects

Canadian network CTV’s decision desk projects a win for Justin Trudeau’s Liberal Party, announcing Trudeau as the country’s Prime Minister for the third straight term on Tuesday. CTV states that Liberals will form a government without a parliamentary majority. 

Read more