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Yesterday’s trade saw GBP/JPY within the range of 193.22-194.58. The pair closed at 193.60, down 0.27% on a daily basis and extending losses from Wednesday. The daily low has also been the lowest level since August 10th, when the cross registered a low of 192.22.

At 9:05 GMT today GBP/JPY was down 0.19% for the day to trade at 193.25. The pair overshot the lower range breakout level (S4), as it touched a daily low at 192.72 at 3:05 GMT. It is now the new lowest level since August 10th.

No relevant macroeconomic reports and/or events are scheduled in both the UK and Japan for today.

Bond Yield Spread

The yield on Japanese 2-year government bonds went as high as 0.008% on August 20th, or matching the high levels registered during the prior two trading days, after which it slid to 0.006% at the close to gain 0.001 percentage point on a daily basis.

The yield on UK 2-year government bonds climbed as high as 0.572% on August 20th, after which it fell to 0.550% at the close to lose 1.1 basis points (0.011 percentage point) for the day, while marking a second consecutive day of decline.

The spread between 2-year UK and 2-year Japanese bond yields, which reflects the flow of funds in a short term, narrowed to 0.544% on August 20th from 0.554% during the prior day. The August 20th difference has been the lowest one since July 9th, when the yield spread was 0.534%.

Meanwhile, the yield on Japan’s 10-year government bonds soared as high as 0.378% on August 20th, after which it slid to 0.375% at the close to lose 0.002 percentage point compared to August 19th.

The yield on UK 10-year government bonds climbed as high as 1.805% on August 20th, after which it slipped to 1.750% at the close to lose 9.4 basis points (0.094 percentage point) on a daily basis, while marking a second consecutive day of decrease.

The spread between 10-year UK and 10-year Japanese bond yields shrank to 1.375% on August 20th from 1.467% during the prior day. The August 20th yield difference has been the lowest one in more than three months.

Daily and Weekly Pivot Levels

gbp-jpy 30min

By employing the Camarilla calculation method, the daily pivot levels for GBP/JPY are presented as follows:

R1 – 193.72
R2 – 193.85
R3 (range resistance – green on the 30-minute chart) – 193.97
R4 (range breakout – red on the 30-minute chart) – 194.35

S1 – 193.48
S2 – 193.35
S3 (range support – green on the 30-minute chart) – 193.23
S4 (range breakout – red on the 30-minute chart) – 192.85

By using the traditional method of calculation, the weekly pivot levels for GBP/JPY are presented as follows:

Central Pivot Point – 193.91
R1 – 195.61
R2 – 196.75
R3 – 198.45

S1 – 192.77
S2 – 191.07
S3 – 189.93

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