- The British Pound against the Japanese Yen is up 0.29% on the week.
- US officials and Estonian intelligence confirm the movement of Russian troops towards the Ukraine border, according to Reuters.
- GBP/JPY Technical Outlook: If GBP bulls make a daily close above 156.81, a move to 157.00 is on the cards.
the pound sterling advanced higher for the second day in a row amid a risk-off mood courtesy of Russia/Ukraine headlines. At the time of writing this article, the pair GBP/JPY trades at 156.90.
The financial market mood remains sour on rising geopolitical tensions. US equity indices are trading lower, while in the forex space, risk-sensitive currencies appear unaware of recent developments in the last hour.
Following the release of the Federal Reserve’s monetary policy minutes at around 19:15 GMT, Estonian intelligence reported that Russia is moving ten new battlegroups to the Ukraine border, according to Reuters. A couple of minutes later, the US State Department confirmed that more Russian forces, not fewer, are on the border with Ukraine and moving into fighting positions.
Geopolitical jitters aside, GBP/JPY has bounced back and forth in the 156.40-157.00 range for the past few days. Although the GBP posted gains, the average daily range (ADR) for the past two days narrowed from 112 to 50 pips.
GBP/JPY Price Forecast: Technical Outlook
The GBP/JPY pair is biased to the upside, as the daily chart shows. On Wednesday, the GBP/JPY pair so far recaptured the daily high of Feb 15 at 156.81, and if it records a daily close above this, it could pave the way for further gains.
On the upside, the first GBP/JPY resistance would be 157.00. A breach of the latter would expose a five-month downtrend line around the 157.30-45 area which, once cleared, would exacerbate a move towards 158.00.
On the other hand, the first support for GBP/JPY would be the previous daily high from Feb 4, resistance turned support at 156.47, followed by 156.00 and the daily low from Feb 14 at 155.29.
Additional technical levels
Source: Fx Street
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