Technical Analysis

GBP/JPY touches a high of 148.52 on the day


The key for GBP/JPY buyers now is to hold a break of the 200-day MA (blue line) @ 148.30. Stay above and price momentum turns more bullish moving forward. The pound is one of the key beneficiaries on the day of rising Treasury yields as the yen remains offered as we look towards US trading. That has helped to underpin yen pairs in general but GBP/JPY is the one leading the charge on the day.

Towards the upside, there is key daily resistance levels for buyers to navigate through though. First off, there is the July high @ 149.32 and that helped to limit gains seen last week on the daily chart. The high last week touched 149.71 so that will be the next minor resistance point to watch.

Beyond that it will be the 150.00 level where offers are lined up but also the 38.2 retracement level. Thereafter, there is the broken trendline resistance which helped to stall gains seen in June and July. That currently sits at around 151.30.

It’s been a case of decent recovery this week for the pound as we saw in yesterday’s trading as well. The absence of key negative Brexit rhetoric is helping to give buyers a reason to push price higher but caution is still very much warranted as we move closer towards key Brexit discussions in October in the UK parliament and the EU Summit.

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