GBP / JPY jumps above 140.00, returns near multi-month highs

• A combination of factors helped GBP / JPY gain strong positive traction on Thursday.
• Hopes for a last-minute Brexit deal provided a strong boost to the British pound and acting supportive.
• The optimism of the COVID-19 vaccine undermined the safe haven JPY and contributed to the tone offered.

The crossing GBP/JPY it surpassed the key psychological level of 140.00 and re-approached the nearly three-month highs set the previous day.

Irish Foreign Minister Simon Coveney said Thursday there was a good chance Britain and the European Union would secure a trade deal in the coming days. On the other hand, British Education Secretary Gavin Williamson commented that the UK and the EU are making good progress in the Brexit trade deal negotiations.

This, in turn, rekindled hopes for a last-minute Brexit deal and provided a good boost to the British pound. The GBP / JPY cross was based on the overnight rally from the level below 139.00 and ignored the pessimism led by comments from an EU diplomat, saying issues such as a level playing field and fishing remain. slopes.

On the other hand, the first approval of a vaccine for the highly contagious coronavirus disease undermined the relative safe-haven status of the Japanese yen versus its British counterpart. This was also cited as another factor driving the GBP / JPY cross, which has now moved close to the 140.35-45 bid zone.

Now it will be interesting to see if the bulls can capitalize on the momentum or opt to take some gains off the table at higher levels. However, Brexit-related inbound headlines will continue to play a key role in influencing the price dynamics of the British pound and will produce some significant trading opportunities around the GBP / JPY cross.

Technical levels