- 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 dips below 0.6600 following RBA’s decision
The Australian Dollar registered losses of around 0.42% against the US Dollar on Tuesday, following the RBA's monetary policy decision to keep rates unchanged. However, it was perceived as a dovish decision. As Wednesday's Asian session began, the AUD/USD trades near 0.6591.
EUR/USD edges lower to near 1.0750 after hawkish remarks from a Fed official
EUR/USD extends its losses for the second successive session, trading around 1.0750 during the Asian session on Wednesday. The US Dollar gains ground due to the expectations of the Federal Reserve’s prolonging higher interest rates.
Gold wanes as US Dollar soars, unfazed by lower US yields
Gold price slipped during the North American session, dropping around 0.4% amid a strong US Dollar and falling US Treasury bond yields. A scarce economic docket in the United States would keep investors focused on Federal Reserve officials during the week after last Friday’s US employment report.
FTX files consensus-based plan of reorganization, awaits bankruptcy court approval
FTX has filed a consensus-based plan for its reorganization, coming almost two years after the now defunct FTX filed for Chapter 11 Bankruptcy Protection in the District of Delaware.
Living vicariously through rate cut expectations
U.S. stock indexes made gains on Tuesday as concerns about an overheating U.S. economy ease, particularly with incoming economic reports showing data surprises at their most negative levels since February of last year.