GBP/JPY appreciates further, approaching long-term highs at 156.05


  • 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

GBP/JPY

Overview
Today last price 155.52
Today Daily Change 0.82
Today Daily Change % 0.53
Today daily open 154.7
 
Trends
Daily SMA20 151.47
Daily SMA50 151.57
Daily SMA100 152.48
Daily SMA200 150.65
 
Levels
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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Forex MAJORS

Cryptocurrencies

Signatures