- GBP/JPY struggled to capitalize on its modest intraday gains to the 150.65 region.
- A modest USD weakness helped revive demand for the JPY and exerted pressure.
- Upbeat UK GDP print acted as a tailwind for the sterling and help deeper losses.
The GBP/JPY cross surrendered its modest intraday gains and was last seen hovering near the lower boundary of the intraday trading range, around the 150.30 region.
The cross gained some positive traction during the early part of the trading action on Thursday, albeit a combination of factors failed to assist bulls to capitalize on the move. The uptick ran out of steam near the 150.65 region amid a modest pickup in demand for the Japanese yen, bolstered by the onset of some profit-taking around the US dollar.
On the other hand, the British pound found some support from an upward revision of the UK GDP growth, showing that the economy expanded by 5.5% during the second quarter as against 4.8% estimated. However, the ongoing fuel crisis in the United Kingdom – due to the post-Brexit shortage of truck drivers – acted as a headwind for the sterling.
The combination of factors kept a lid on any further gains for the GBP/JPY cross, rather prompted some selling at higher levels, though the downside remains cushioned. The prevalent risk-on mood might continue to undermine demand for the safe-haven JPY and extend some support to the cross, warranting caution for aggressive bearish traders.
Hence, it will be prudent to wait for sustained weakness below the key 150.00 psychological mark before positioning for any further depreciating move. The GBP/JPY cross might then accelerate the slide towards intermediate support near mid-149.00s before eventually dropping to test sub-149.00 level, or monthly lows touched last week.
Technical levels to watch
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 below 1.0800 on Trump's 'Liberation Day'
EUR/USD is back in the red below 1.0800 in the early European morning on Wednesday as investors rush for the safe-haven US Dollar, aniticpating US President Donald Trump’s long-threatened “reciprocal” tariffs package, due to be announced at 1900 GMT.
GBP/USD trades with caution above 1.2900, awaits Trump’s tariffs reveal
GBP/USD is trading with caution above 1.2900 early Wednesday, struggles to capitalize on the overnight bounce amid resugent haven demand for the US Dollar. Traders remain wary heading into the US 'reciprocal tariffs' announcement on "Liberation Day' at 1900 GMT.
Gold price remains close to record high amid concerns over Trump’s reciprocal tariffs
Gold price regains positive traction amid concerns about Trump’s aggressive trade policies. Fed rate cut bets keep the USD bulls on the defensive and further benefiting the XAU/USD pair. A broadly stable risk sentiment might cap gains ahead of Trump’s tariffs announcement.
Bitcoin, Ethereum and Ripple brace for volatility amid Trump’s ‘Liberation Day’
Bitcoin price faces a slight rejection around its $85,000 resistance level on Wednesday after recovering 3.16% the previous day. Ripple follows BTC as it falls below its critical level, indicating weakness and a correction on the horizon.
Is the US economy headed for a recession?
Leading economists say a recession is more likely than originally expected. With new tariffs set to be launched on April 2, investors and economists are growing more concerned about an economic slowdown or recession.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.