GBP/JPY: Trims losses, trades around 50-day MA

GBP/JPY gapped lower in Asia on string of bad news.
China's coronavirus scare continues to keep risk assets under pressure.
US embassy in Baghdad came under missile attack over the weekend.
GBP/JY's bounce from session lows could be short-lived if risk-off worsens.

Omkar Godbole FXStreet Contributor

GBP/JPY has bounced up from session lows and is currently flirting with the 50-day moving average at 142.46.

Gap down open

The pair opened the week lower at 142.43 and fell to a low of 142.05 as the futures on the S&P 500 dropped and the yen picked up an early bid on a string of risk-off news.

While China continued to struggle to tame the coronavirus over the weekend, the US embassy in Baghdad came under attack with three missiles landing near the troops.

Further, the Trump administration expanded its trademark steel and aluminum tariffs to cover certain derivative products like imported nails, staples, electrical wires. Also, markets are worried that President Trump's trade ire may shift to Europe, given the trade tensions with China have eased with the signing of the phase one trade deal.

The bounce seen from session lows could be reversed if the risk-off tone in the equities worsens. At press time, the futures on the S&P 500 are down 0.86%.

Technical levels

GBP/JPY

Overview
Today last price	142.36
Today Daily Change	-0.54
Today Daily Change %	-0.38
Today daily open	142.9

Trends
Daily SMA20	143.13
Daily SMA50	142.55
Daily SMA100	139.57
Daily SMA200	137.75

Levels
Previous Daily High	144.42
Previous Daily Low	142.72
Previous Weekly High	144.61
Previous Weekly Low	142.72
Previous Monthly High	147.96
Previous Monthly Low	140.28
Daily Fibonacci 38.2%	143.37
Daily Fibonacci 61.8%	143.77
Daily Pivot Point S1	142.27
Daily Pivot Point S2	141.65
Daily Pivot Point S3	140.57
Daily Pivot Point R1	143.97
Daily Pivot Point R2	145.05
Daily Pivot Point R3	145.67

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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