GBP/JPY advances to 161.00 in tandem with higher equities, ignoring rising geopolitical risks

GBP/JPY has advanced on Monday in tandem with other risk-sensitive currency pairs as US equities push higher.
Dovish BoE commentary and recent negative Russo-Ukraine war developments have failed to dent risk appetite, with GBP/JPY now at 161.00.

Joel Frank Independent Analyst

Dovish commentary from BoE Deputy Governor Jon Cunliffe, who said that a drop in demand through household consumption and business investment as a result of the Russo-Ukraine war will be larger than expected failed to dent GBP/JPY on Monday. The pair was last trading 0.2% higher around the 161.00 level and earlier came within a whisker of matching its highs from last Wednesday in the 161.30s. Cunliffe was the lone dissenter against a 25 bps rate hike at the BoE’s last meeting, and so market participants don’t seem surprised that he is taking a more dovish view on the economy.

Global equities are performing well on Monday, with US equities erasing pre-open indecision and now firmly on the front foot, despite concerns about recent geopolitical developments in the Russo-Ukraine war and this is lifting the risk-sensitive GBP/JPY cross. Russia’s troop pullback in the north has revealed a mountain of evidence of potential war crimes and, as a result, international pressure is mounting on the EU to implement a ban on Russian energy imports. But risk assets are for now immune and if this remains the case, then GBP/JPY could remain supported and perhaps even advance on towards the 162.00 mark.

GBP/JPY

Overview
Today last price	161
Today Daily Change	0.36
Today Daily Change %	0.22
Today daily open	160.64

Trends
Daily SMA20	157.02
Daily SMA50	155.98
Daily SMA100	154.7
Daily SMA200	153.67

Levels
Previous Daily High	161.19
Previous Daily Low	159.8
Previous Weekly High	164.64
Previous Weekly Low	159.05
Previous Monthly High	164.64
Previous Monthly Low	150.99
Daily Fibonacci 38.2%	160.66
Daily Fibonacci 61.8%	160.33
Daily Pivot Point S1	159.9
Daily Pivot Point S2	159.15
Daily Pivot Point S3	158.51
Daily Pivot Point R1	161.29
Daily Pivot Point R2	161.93
Daily Pivot Point R3	162.68

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

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