GBP/JPY weakens farther below 200-DMA, hits fresh 1-month lows

Haresh Menghani FXStreet

• Disappointing UK services PMI triggers the initial leg of downfall.
• Reviving safe-haven demand underpins JPY and adds to the pressure.
• Technical studies suggest a continuation of the near-term downfall.

After an initial attempted recovery closer to mid-149.00s, the GBP/JPY cross met with some fresh supply and dropped to fresh one-month lows in the last hour.

The cross drifted into negative territory for the third consecutive session, also marking the fifth day of losses in the previous six, and broke below the very important 200-day SMA support following the weaker-than-expected release of UK services PMI print for April.

With investors looking past yet another disappointing UK economic data, the prevalent strong bid tone surrounding the Japanese Yen, amid reviving safe-haven demand, seems to be one of the key factors behind the pair's latest leg of downfall.

Currently trading near the 148.50 region, the cross has now retreated around 100-pips from session tops, with a follow-through weakness, led by some fresh technical selling below an important moving average support, now looking a distinct possibility.

Technical levels to watch

Any subsequent weakness below 148.40 levels is likely to drag the cross further towards testing sub-148.00 level en-route mid-147.00s. On the upside, any recovery attempts now seem to face some fresh supply near the 149.00 handle (200-DMA), above which the recovery could further get extended back towards reclaiming the key 150.00 psychological mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.