- 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.
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.
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
AUD/USD: A tough barrier remains around 0.6800
AUD/USD failed to maintain the earlier surpass of the 0.6800 barrier, eventually succumbing to the late rebound in the Greenback following the Fed’s decision to lower its interest rates by50 bps.
EUR/USD still targets the 2024 peaks around 1.1200
EUR/USD added to Tuesday’s losses after the post-FOMC rebound in the US Dollar prompted the pair to give away earlier gains to three-week highs in the 1.1185-1.1190 band.
Gold surrenders gains and drops to weekly lows near $2,550
Gold prices reverses the initial uptick to record highs around the $$2,600 per ounce troy, coming under renewed downside pressure and revisiting the $2,550 zone amidst the late recovery in the US Dollar.
Ethereum could rally to $2,817 following Fed's 50 bps rate cut
Ethereum (ETH) is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's (Fed) decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds (ETF) recorded $15.1 million in outflows.
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting
The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.