GBP/JPY trades with modest gains, lacks follow-through beyond 154.00 mark

  • A combination of factors assisted GBP/JPY to gain some follow-through traction on Thursday.
  • The GBP drew support from easing fears about a breakdown of the post-Brexit EU-UK relations
  • A positive risk tone undermined the safe-haven JPY and remained supportive of the modest uptick.

The GBP/JPY cross maintained its bid tone through the early European session, albeit lacked follow-through and so far, has struggled to capitalize on the move beyond the 154.00 mark.

The cross built on the previous day's bounce from 153.35 area and gained some positive traction on Thursday amid a goodish pickup in demand for the British pound. Reports indicated that Britain would hold off suspending parts of the Brexit divorce deal relating to Northern Ireland for as long as talks with the EU remain constructive. This helped ease fears about a further breakdown of the post-Brexit UK-EU relations.

Meanwhile, the prospects for an imminent rate hike by the Bank of England turned out to be another factor that provided a modest lift to the sterling. Adding to this, a generally positive tone around the equity markets undermined the Japanese yen's relative safe-haven status and remained supportive. That said, the worsening row over the post-Brexit fishing rights between France and Britain capped gains for the GBP/JPY cross.

In the latest development, French fishermen were reportedly planning to block British vessels' access to French ports in protest against Britain's refusal to grant them more licences to operate in UK territorial waters. This warrants some caution for bullish traders and positioning for any further appreciating move for the GBP/JPY cross amid absent relevant market-moving economic releases from the UK on Thursday.

Traders now look forward to the BoE Governor Andrew Bailey's scheduled speech for some impetus later this Thursday. Apart from this, fresh Brexit-related developments will influence the sentiment surrounding the sterling. Traders will further take cues from the broader market risk sentiment, which will drive demand for the safe-haven JPY and produce some meaningful trading opportunities around the GBP/JPY cross.

Technical levels to watch


Today last price 154.03
Today Daily Change 0.23
Today Daily Change % 0.15
Today daily open 153.8
Daily SMA20 154.05
Daily SMA50 153.58
Daily SMA100 152.67
Daily SMA200 152.43
Previous Daily High 154.16
Previous Daily Low 153.37
Previous Weekly High 154.75
Previous Weekly Low 152.52
Previous Monthly High 158.22
Previous Monthly Low 149.23
Daily Fibonacci 38.2% 153.67
Daily Fibonacci 61.8% 153.86
Daily Pivot Point S1 153.4
Daily Pivot Point S2 152.99
Daily Pivot Point S3 152.62
Daily Pivot Point R1 154.18
Daily Pivot Point R2 154.56
Daily Pivot Point R3 154.96



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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD retreats below 1.1300 area as NFP-inspired dollar weakness fades

EUR/USD jumped to a daily high of 1.1333 with the initial market reaction to the disappointing November Nonfarm Payrolls data but quickly returned below 1.1300. Rising US Treasury bond yields seem to be helping the dollar stay resilient against its major rivals. 


GBP/USDdrops to 1.3250 area as dollar regains strength

GBP/USD spiked above 1.3300 in the early American session with the initial market reaction to the gloomy US November jobs report. However, the greenback regathered strength on hawkish Fed commentary and forced the pair to turn south.


Gold struggles to capitalize on weak NFP data, holds near $1,770

Gold spiked to a daily high near $1,780 with the initial market reaction to the disappointing Nonfarm Payrolls data from the US but seems to be having a difficult time preserving its bullish momentum with the 10-year US T-bond yield staying resilient.

Gold News

The bull and the bear case for BTC

Bitcoin price saw a bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. Bitcoin is likely to experience massive volatility as the situation resolves over time. 

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!