GBP/JPY trades with modest losses around mid-154.00s


  • A combination of factors dragged GBP/JPY into the negative territory for the second straight day.
  • COVID-19/COVID-19 woes continued weighing on the British pound and exerted some pressure.
  • A modest JPY uptick contributed to the downtick; the risk-on environment helped limit losses.

The GBP/JPY cross dropped to fresh daily lows, around the 154.30 region during the first half of the European session, albeit lacked any strong follow-through selling.

The cross struggled to capitalize on its intraday uptick, instead met with some fresh supply in the vicinity of the key 155.00 psychological mark and turned lower for the second straight day. The British pound's relative underperformance could be attributed to growing market worries that the UK may delay its plans to end restrictions fully in light of the spread of the Delta variant.

Senior ministers in the UK signed off a decision to postpone the lifting of all COVID-19 restrictions beyond June 21. British Prime Minister Boris Johnson will make a statement on the coronavirus situation later this Monday and push back the timeline to end lockdown measures. This, along with the EU-UK stand-off over Norther Ireland protocol exerted some additional pressure on the sterling.

In a further escalation of the dispute between the two parties, the EU warned of swift and firm action if the UK fails to implement its post-Brexit obligations. Adding to this, French President Emmanuel Macron said that NI is not a part of the UK. This was seen as another factor that kept the GBP bulls on the defensive and prompted some fresh selling around the GBP/JPY pair.

On the other hand, the Japanese yen benefitted from a subdued US dollar price action, which further contributed to the offered tone surrounding the GBP/JPY cross. That said, the underlying bullish sentiment in the financial markets capped any meaningful gains for the safe-haven JPY and helped limit any further losses for the GBP/JPY cross amid absent relevant market moving economic releases.

From a technical perspective, the GBP/JPY cross, so far, has managed to hold its neck comfortably above the two-week lows touched last Friday. This should now act as a key pivotal point, which if broken decisively will set the stage for an extension of the recent pullback from the 156.00 mark, or the highest level since February 2018 touched in May.

Technical levels to watch

GBP/JPY

Overview
Today last price 154.49
Today Daily Change -0.17
Today Daily Change % -0.11
Today daily open 154.66
 
Trends
Daily SMA20 154.82
Daily SMA50 152.8
Daily SMA100 150.48
Daily SMA200 144.31
 
Levels
Previous Daily High 155.21
Previous Daily Low 154.64
Previous Weekly High 155.32
Previous Weekly Low 154.13
Previous Monthly High 156.08
Previous Monthly Low 150.93
Daily Fibonacci 38.2% 154.86
Daily Fibonacci 61.8% 154.99
Daily Pivot Point S1 154.47
Daily Pivot Point S2 154.27
Daily Pivot Point S3 153.9
Daily Pivot Point R1 155.03
Daily Pivot Point R2 155.4
Daily Pivot Point R3 155.6

 

 

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: Weakness to persists ahead of Fed

The EUR/USD pair closed in the red for a second consecutive week, settling at 1.1770.  Global stocks’ indexes closed in the green, reflecting a better market’s mood. EUR/USD consolidates near multi-month lows, could extend its decline.

EUR/USD News

GBP/USD: Demand for the pound is still partial

The GBP/USD pair ended Friday and the week unchanged around 1.3750, after bottoming on Tuesday at 1.3571, its lowest in five months. Brexit and the pandemic keep limiting demand for the pound. GBP/USD is losing bullish strength, but there are no signs of an upcoming slide.

GBP/USD News

Gold bears await break below 100-day SMA at $1,796

Following a four-week winning streak, the XAU/USD pair struggled to make a decisive move in either direction and fluctuated between key technical levels. After rising above $1,820 on Tuesday, gold turned south in the second half of the week but managed to close the week a little above the key 100-day SMA, which is currently located at $1,796.

Gold News

Cardano might pull back to $1.11 before heading higher

Cardano price pierced the July 18 swing high at $1.21, indicating a resurgence of buyers. Although ADA might try to slice through $1.25, a retracement will likely evolve before tagging $1.37.

Read more

US Markit PMIs Preview: Pre-weekend dollar boost? Downbeat figures could exacerbate risk-off mood

Two steps down, one step up – that has been the playbook for risk-averse markets. What happens when traders have little time to act ahead of the weekend and the last word belongs to a downbeat figure? 

Read more

Forex MAJORS

Cryptocurrencies

Signatures