- GBP/JPY eyes the biggest daily loss in a week after confirming bearish chart formation, pressured around intraday low of late.
- US 10-year, two-year Treasury bond yields refresh three-month high amid hawkish Fed bets, recession woes.
- Theoretical target of 180.90 can prod GBP/JPY bears on their way to 180.00 psychological magnet.
- Bulls have a long road to travel before retaking control, 184.00 is the key.
GBP/JPY takes offers to refresh the weekly low around 182.70 heading into Thursday’s London open. The cross-currency pair's latest weakness could be linked to the market's risk-off mood. However, the firmer yields should have prod the quote of late.
Also read: Asian stocks drop as S&P500 Futures slide to 4,470, US Treasury bond yields refresh three-month high
In doing so, the cross-currency pair justifies the previous day’s confirmation of the one-week-old rising wedge bearish chart pattern. Additionally favoring the pair sellers is the quote’s sustained break of the 200-Hour Moving Average (HMA), as well as the bearish MACD signals.
That said, the GBP/JPY becomes vulnerable to testing the rising wedge’s theoretical target of around 180.90. However, the late June swing high near 181.50 and the 180.00 round figure are extra filters toward the south that gain the market’s attention.
Meanwhile, the June 20 swing low of around 179.90 appears the last defense of the short-term GBP/JPY buyers.
On the flip side, 200-HMA and the bottom line of the aforementioned wedge limit short-term recovery of the GBP/JPY pair around 183.10 and 183.20 in that order.
Following that, an upward-sloping support line from June 21 and the stated wedge’s top line, respectively near 183.50 and 184.05, can challenge the GBP/JPY buyers before giving them control.
GBP/JPY: Hourly chart
Trend: Further weakness expected
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
EUR/USD drops to 1.0450 ahead of German IFO
EUR/USD edges lower to near 1.0450 in the early European session on Monday. The US Dollar extends recovery amid risk aversion, weighing on the pair. ECB rate cut expectations also continue to undermine the Euro, adding to the pair's downside ahead of Germany's IFO survey.
GBP/USD slips below 1.2450 as risk-off mood lifts US Dollar
GBP/USD remains under selling pressure and gives up 1.2450 in the early European session on Monday. The pair is undermined by the resurgent haven demand for the US Dollar amid Trump's tariff risks and global tech stocls sell-off.
Gold price remains depressed amid USD strength; downside seems limited
Gold price kicks off the new week on a weaker note amid a modest USD recovery. Fed rate cut bets and sliding US bond yields might cap any further USD move up. Renewed trade war fears could help limit losses for the safe-haven XAU/USD pair.
Pepe Price Forecast: PEPE eyes for 20% crash
Pepe continues its decline, trading around $0.000012 and dipping nearly 10% at the time of writing on Monday after correcting more than 12% the previous week. PEPE’s long-to-short ratio trades below one, indicating more traders are betting on the frog-based meme coin to fall.
ECB and US Fed not yet at finish line
Capital market participants are expecting a series of interest rate cuts this year in both the Eurozone and the US, with two interest rate cuts of 25 basis points each by the US Federal Reserve and four by the European Central Bank (ECB).
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.