GBP/JPY cheers May’s offer to EU citizens, re-takes 141.50?

Dhwani Mehta FXStreet

The bulls have regained poised in the Asian session on the final trading day of the week, allowing GBP/JPY to build onto yesterday’s gains, in a bid to regain 141.50 barrier.

GBP/JPY makes higher lows on daily charts

The GBP/JPY pair now rises +0.10% to flirt with daily tops of 141.37, mainly driven by broad based GBP, as the pound benefits from a positive outcome at the Brussels Summit, where the UK PM Theresa May outlined her offer on the EU citizens’ rights post-Brexit.

Moreover, stabilizing oil prices combined with higher Treasury yields underpin the risk sentiment, keeping the Yen on the back, which in turn lends support to the upside in the cross.

Later today, the spot will continue to take cues from the broader market sentiment and Brexit developments amid a lack of economic data from the UK docket. Meanwhile, the US manufacturing PMI and new home sales data will be also closely eyed.

GBP/JPY: Technical Levels

Higher side: 141.76/81 (classic R2/ Jun 21 high), 142 (round figure), 142.50/54 (psychological levels/ Jun 20 high)

Lower side: 141.17/14 (200 & 10-DMA), 140.93 (daily pivot), 140.48 (Jun 22 low)

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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