GBP/JPY struggles for direction below 152.00 amid downbeat S&P 500 Futures

GBP/JPY wobbles inside a 10-pip trading range.
UK’s optimism over taming the covid contrasts Japan’s worsening virus conditions.
Off in Tokyo, light calendar restricts pair’s moves ahead of UK Manufacturing PMI.

Anil Panchal FXStreet

GBP/JPY seesaws around 151.65 while staying inside the recent trading range amid Tuesday’s Asian session. Although downbeat S&P 500 Futures probed the pair’s month-start rise, bears look for fresh clues to retake controls.

With the news suggesting further virus-led activity controls in Hokkaido, Japan’s largest prefecture by area, S&P 500 Futures drop to the intraday low, down 0.22% on a day by the press time.

Not only the downbeat news from Japan but the UK PM Boris Johnson’s optimism to go ahead with restriction loosening in June also trouble the GBP/JPY traders. Furthermore, UK Foreign Secretary Dominic Raab’s comments pushing for a balanced solution to the Northern Ireland (NI) protocol can magnify the Brexit woes and add to the pair trader’s confusion.

It should, however, be noted that the UK’s covid conditions are much better than Japan and hence the pair could stay on the front foot. Also favoring the quote could be the off in Asian major and optimism surrounding economic growth in the West versus Asia, mainly due to the coronavirus (COVID-19).

Moving on, the second reading of the UK’s Manufacturing PMI for April, expected to confirm 60.7 preliminary forecasts, may offer immediate direction to the GBP/JPY traders. Also, the British trader’s reaction to the latest market moves following the long weekend will be the key as well.

Technical analysis

Unless breaking down the 150.75-70 support confluence comprising 21-day and 50-day SMA, GBP/JPY sellers may not risk entries.

Additional important levels

Overview
Today last price	151.65
Today Daily Change	-0.06
Today Daily Change %	-0.04%
Today daily open	151.71

Trends
Daily SMA20	150.67
Daily SMA50	150.69
Daily SMA100	146.51
Daily SMA200	142.14

Levels
Previous Daily High	151.93
Previous Daily Low	150.93
Previous Weekly High	152.41
Previous Weekly Low	149.54
Previous Monthly High	153.42
Previous Monthly Low	149.06
Daily Fibonacci 38.2%	151.55
Daily Fibonacci 61.8%	151.31
Daily Pivot Point S1	151.11
Daily Pivot Point S2	150.52
Daily Pivot Point S3	150.1
Daily Pivot Point R1	152.12
Daily Pivot Point R2	152.53
Daily Pivot Point R3	153.13

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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