- GBP/JPY reclaimed the 155.00 level on Friday, the pair rising as a resurgence of risk appetite undermined yen demand.
- But GBP/JPY continues to trade down about 0.8% on the week and ongoing uncertainty regarding geopolitics.
The GBP/JPY was able to reclaim the 155.00 level on Friday, with the pair rising as a strong rally in US equity markets and other risky assets curbed safe-haven demand for the yen. At current levels, just above a big figure, the pair is now trading over 1.0% gains from Thursday’s lows. From a technical point of view, the fact that the 200-day moving average at 153.39 held up so well on Thursday (it literally formed the bottom of the day) is a good sign for the bulls.
But GBP/JPY continues to trade down about 0.8% on the week and the current uncertainty regarding geopolitics and how the war in Ukraine will affect the European/global economy may make it difficult for the pair to push substantially higher. The West’s sanctions response to Russia has so far been seen as soft and there is still hope for a diplomatic solution to the war, but the fighting in Ukraine is intensifying and casualties are mounting. Depending on events over the weekend, things could really go either way for the GBP/JPY pair.
Additional technical levels
Source: Fx Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
