- GBP / JPY firmed up after Thursday’s rebound.
- It again found resistance at 155.20 and lost strength.
The GBP / JPY is moving without a clear direction on Friday and continues with sideways rallies, as it has been doing since the beginning of the week around 155.00.
After a volatile session on Thursday, where after falling to 154.12, it quickly rebounded back to the previous range, the pound is validating that rebound. Even the rises slowed again around 155.20, the current resistance.
The yen it was no longer favored by falling Treasury yields. That, together with a rally in stocks, gave support to GBP / JPY, which ended up rebounding strongly with the rise in GBP / USD.
The pound on Friday is among the currencies that fell the least against the dollar, even despite the economic data that was known from the United Kingdom, which was not better than expected. Concern in the United Kingdom is about whether there will be a delay in the reopening of June 21 due to the spread of the Delta variant of the coronavirus.
From a technical point of view, a confirmation above 155.30 would point to more rises, with a possible retest target at the 156.00 area. To the downside, an affirmation below 154.40 would leave the pound weak, pointing to an extension of the downward correction.