- GBP/JPY's rally extends to fresh five-month highs at 155.70.
- The pound remains bid on BoE hike expectations.
- GBP/JPY could reach 159.80 – Credit Suisse.
The British pound has appreciated for the sixth consecutive day on Thursday, breaching the 155.00 level to approach three-year highs right above 156.00. The remains bid against an ailing Japanese yen on Thursday, after having gained nearly 4% so far in October.
BoE rate hike expectations are supporting the GBP rally
The sterling remains trading on a firm tone, with the investors pricing an interest rate hike by the Bank of England early next year. Surging energy prices have pushed yearly inflation to levels almost twice the BoE’s target for price stability in the UK, and some Bank officials are starting to suggest the possibility of accelerating the monetary policy normalization plan.
Furthermore, a somewhat higher appetite for risk on Thursday has weighed safe assets, like the Japanese yen, favoring riskier currencies such as the GBP. The world’s major stock markets are posting substantial advances, with the US indexes trading well above 1% at the time of writing.
The Dow Jones trades 1.49% up, while the S&P and Dow Jones Indexes advance 1.62% and 1.68% respectively with upbeat quarterly results offsetting concerns about inflationary pressures and supply chain bottlenecks thwarting the economic recovery.
GBP/JPY might extend its rally towards 159.80 – Credit Suisse
From a technical point of view, the pair seems ready to extend its rally to levels near 160.00, according to the FX analysis team at Credit Suisse: “With a major base already seen established in February 2021, we look for a break above 156.62 to further reinforce the positive outlook, with resistance seen next at 159.80.”
Technical levels to watch
|Today last price||155.52|
|Today Daily Change||0.82|
|Today Daily Change %||0.53|
|Today daily open||154.7|
|Previous Daily High||154.96|
|Previous Daily Low||154.12|
|Previous Weekly High||152.94|
|Previous Weekly Low||150.22|
|Previous Monthly High||152.85|
|Previous Monthly Low||148.96|
|Daily Fibonacci 38.2%||154.64|
|Daily Fibonacci 61.8%||154.44|
|Daily Pivot Point S1||154.23|
|Daily Pivot Point S2||153.75|
|Daily Pivot Point S3||153.38|
|Daily Pivot Point R1||155.07|
|Daily Pivot Point R2||155.44|
|Daily Pivot Point R3||155.91|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.