GBP / JPY recovers to five-year highs and approaches 157.00

Get real time updates directly on you device, subscribe now.

  • The pound sterling continues its rally against the Japanese yen thanks to expectations of a rate hike from the BoE.
  • Market sentiment is bullish, boosting risk-sensitive currencies like the British pound.
  • The Japanese finance minister said that the stability of the currency is “very important” and will be attentive to the movements of the currency market.

The GBP/JPY It extends its seven-day rally during the New York session, up 1.09%, trading at 157.14 at the time of writing. As evidenced by the rise in US equities between 0.48% and 1.13%, market sentiment for risk in financial markets is weighing on the safe-haven yen.

The British pound and the New Zealand dollar are the strongest currencies in the foreign exchange market, while the Japanese yen lags the furthest behind. Factors such as risk appetite and central bank divergence put additional pressure on the yen.

Since Monday this week, the British pound has been on the right foot against the yen. Over the past weekend, members of the Bank of England raised concerns about higher energy prices, which in part spurred consumer prices above the levels tolerated by the central bank. That said, Michael Saunders and Governor Andrew Bailey spoke openly about the need for higher rates to contain inflationary pressures.

Meanwhile, Finance Minister Shunichi Suzuki said that currency stability is “very important” and that the Japanese government will examine the economic impact of currency market movements. In addition, he added that “we will continue to closely monitor currency market movements and their impact on the economy.”

GBP / JPY Price Forecast: Technical Outlook

The weekly chart shows that the cross is at five-year highs, approaching the swing highs of June 2016, around 160.10, which is the next resistance for the GBP / JPY pair.
GBP / JPY is in an uptrend, confirmed by the Relative Strength Index (RSI) at 66, pointing higher, accelerating towards oversold levels, but with room for another rise. However, to resume the uptrend, you will need a close above 157.00.

Technical levels


Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.