- GBP / JPY fades from the previous move to highs near 145.00.
- Rising US yields are fueling the yen’s sell bias.
- UK Q4 GDP figures will be available later this week.
The selling bias in the Japanese safe haven raised the GBP/JPY to new highs at levels just below 145.00 earlier on Monday.
GBP / JPY at 1-year highs
GBP / JPY now turned negative at the 144.40 zone, retracing part of the initial advance near 145.00, the area last visited in February 2020.
Indeed, US yields, in particular the 10-year benchmark, continue their northward march and put the Japanese yen under further selling pressure. Also helping with the bullish momentum at the crossover the recent bullish BoE event gave the British pound additional boost.
Later in the week, Governor Bailey is due to speak ahead of anticipated fourth-quarter GDP figures expected on Friday.
Technical levels
At the moment the cross is retreating 0.13% at 144.45 and faces the next support at 142.84 (monthly low of February 4) seconded by 144.95 (high of February 21, 2020) and finally 140.35 (low of January 18) . On the other hand, a breakout above 144.93 (February 8, 2021 high) would expose 147.97 (December 13, 2019 monthly high) and then 148.87 (March 19, 2019 high).
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