GBP/JPY climbs to over one-week high, bulls have the upper hand above 162.00

GBP/JPY continued scaling higher for the fourth successive day on Wednesday.
The BoJ’s dovish stance weighed on the JPY and remained supportive.
Modest USD pullback benefitted the GBP and contributed to the intraday move up.

Haresh Menghani FXStreet

The GBP/JPY cross added to its intraday gains and shot to over a one-week high, beyond the 162.00 mark during the first half of the European session.

The cross prolonged last week's late recovery move from the 159.00 mark and gained some follow-through traction for the fourth successive day on Wednesday. On Tuesday, the Bank of Japan Governor Haruhiko Kuroda reiterated Kuroda reiterated on Tuesday that the central bank would offer to buy an unlimited amount of 10-year JGBs if the rise in long-term interest rates is rapid. This, in turn, continued weighing on the Japanese yen and acted as a tailwind for the GBP/JPY cross.

On the other hand, the British pound staged a goodish recovery from the multi-week low amid a modest US dollar pullback from a nearly two-year high. This was another factor contributing to the bid tone surrounding the GBP/JPY cross. The prevalent cautious mood should drive some haven flows towards the JPY. This, in turn, warrants some caution for aggressive bullish trades and should keep a lid on any meaningful gains for the cross.

The market sentiment remains fragile amid fading hopes for a diplomatic solution to end the war in Ukraine and the prospect of more Western sanctions on Russia over its alleged war crimes. Hence, the market focus will remain on new developments surrounding the Russia-Ukraine saga. The incoming geopolitical headlines will influence the risk sentiment, which will drive demand for the safe-haven JPY and provide some impetus to the GBP/JPY cross.

From a technical perspective, a sustained move back above the 162.00 mark could be seen as a fresh trigger for bullish traders. This, in turn, supports prospects for a move to test the next relevant resistance near the 162.70 region. Some follow-through buying beyond the 163.00 mark has the potential to lift the GBP/JPY cross towards the 164.00 round figure.

Technical levels to watch

GBP/JPY

Overview
Today last price	162.12
Today Daily Change	0.54
Today Daily Change %	0.33
Today daily open	161.58

Trends
Daily SMA20	158.02
Daily SMA50	156.29
Daily SMA100	154.86
Daily SMA200	153.75

Levels
Previous Daily High	161.98
Previous Daily Low	160.51
Previous Weekly High	164.64
Previous Weekly Low	159.05
Previous Monthly High	164.64
Previous Monthly Low	150.99
Daily Fibonacci 38.2%	161.42
Daily Fibonacci 61.8%	161.07
Daily Pivot Point S1	160.74
Daily Pivot Point S2	159.89
Daily Pivot Point S3	159.28
Daily Pivot Point R1	162.2
Daily Pivot Point R2	162.82
Daily Pivot Point R3	163.66

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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