Is GBP/JPY building base below 149.00?

The chart shows multiple daily lows around 148.90.
Japan logs trade deficit in January, Tankan index dropped in Feb.

Omkar Godbole FXStreet Contributor

Four out of last six candles on the GBP/JPY daily chart show intraday low in the 148.90 neighborhood.

Further, last Wednesday's "long-tailed" doji also indicated the sell-off from 156.61 (Feb. 2 high) has run out of steam. The price action indicates the cross could be building a base for a corrective rally. As of writing, the pair is trading at 149.20.

Japan reported trade deficit of ￥(JPY) 943.4 billion in January as imports rose 7.9 percent year-on-year and exports jumped 12.2 percent. Meanwhile, the Tankan index showed confidence among Japanese manufacturers worsened significantly in February due to appreciation in the Yen. Both data sets have not had any significant impact on the JPY pairs.

That said the pair could witness a big move higher if UK wage growth data due this Wednesday beat estimates. Also, PM May and several ministers are set to deliver a series of speeches this week. The pound may find takers if May and Co. clarify the government’s position on Brexit.

GBP/JPY Technical Levels

A break above 149.48 (5-day MA) would open up upside towards 150.00 (psychological level) and 150.38 (10-day MA). On the downside, breach of support at 148.78 (previous day's low) could yield 147.96 (last Wednesday's doji candle low) and 147.60 (200-day MA).

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD loses traction, breaks below 1.1900

EUR/USD comes under extra downside pressure, breaching below the 1.1900 support once again on Tuesday. The improved tone in the US Dollar keeps the pair on the back foot after two consecutive daily advances. In the meantime, prudence is expected to kick in ahead of the release of the key US Nonfarm Payrolls on Wednesday.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.