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GBP / JPY falls back below 157.00

  • GBP / JPY has retraced below the 157.00 level on Wednesday after rejecting a push attempt above 157.50.
  • As the dollar dips after the US CPI data, the overbought British pound has been struggling to profit as much as its G10 peers.

The GBP/JPY it ran out of steam when it tried to climb above the 157.50 level and test last week’s high of 157.77 on Wednesday and has since fallen back below the 157.00 level. It currently operates at 156.85, losing 0.2% on the day and is trading sideways again on the week. Wednesday’s pullback from the highs of the previous session marks a failure for the pair to break out of its recent 156.00-157.80 range that it has been locked in for the past week.

Since bottoming below 149.00 in December, GBP / JPY has risen more than 5.0%. Comparing that to EUR / JPY, which is below 3.0% from its December lows, USD / JPY, which is now below 2.0%, and CAD / JPY, which is closer to 4 ,5%. Of the major G10 currencies, the performance of the British pound has been particularly impressive of late, as fears about Omicron and its economic impact have subsided, thus allowing the British pound to finally benefit from the aggressive attitude of the BoE (the bank started raising rates in December). In the middle of last week, GBP / JPY’s 14-day Relative Strength Index rose above 70 (indicating overbought conditions) and, although it has since fallen again, the pair may still be suffering. the effects.

Technical levels

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