Blog: GBP/JPY defends 152.00 as Brexit, coronavirus woes battle mild risk-on mood – FXStreet

  • GBP/JPY picks up bids near the monthly high.
  • Vaccine hopes joins recently positive updates over Sino-America, US-Iran tussles to favor risk appetite.
  • UK Health Minister turns down virus-led lockdowns, vaccine passports, HMRC data portrays heavy Brexit burden.
  • Risk catalysts remain on the driver’s seat amid a light calendar at the week’s start.

GBP/JPY holds onto the previous day’s upside momentum, recently sidelined around 152.10 during Monday’s Asian session. In doing so, the cross-currency pair struggles between cautious optimism in the market and domestic plays.

Talking about broad catalysts, the chatters over US stimulus, Iran and the easing of the Sino-American tussles join the vaccine optimism to favor the market sentiment during the week start.

US Democrats are up for easing their previous demands to push forward President Joe Biden’s $3.5 trillion stimulus. Biden’s six-pronged strategy and the US-China talks after multiple months of silence favor market sentiment and commodity prices. Additionally, the International Atomic Energy Agency (IAEA) Chief Rafael Grossi recently visited Tehran and returned with the good news of striking a deal with Iran to solve “the most urgent issue” between them.

At home, covid-led deaths eased but the infections remain at higher levels. “The numbers are down from the 68 deaths and 37,011 cases recorded last Sunday, while yesterday’s data saw the UK record 156 COVID deaths and 29,547 cases,” per Sky News. Even so, UK Health Secretary Sajid Javid recently ruled out another lockdown, as well as vaccine passports, per Mint.

Elsewhere, Her Majesty’s Revenue and Customs (HMRC) data hint at an extra £600m in costs to British importers since January, per The Guardian. Scotland’s Deputy First Minister is up for criticizing the same during his speech to the SNP national conference.

Amid these plays, S&P 500 Futures rise 0.25% while US 10-year Treasury yields stay firmer around 1.34% by the press time.

Considering Monday’s light calendar, qualitative headlines concerning the sentient will be the key for GBP/JPY traders.

Technical analysis

In addition to a descending resistance line from May 28, around 152.20, a 100-DMA level of 152.85, adds to the upside filters for the GBP/JPY prices.

 

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