GBP/JPY edges up from 155.90 lows and consolidates near 156.50

The British pound has edged up on Monday against a somewhat softer Japanese yen. The pair found support 155.90 lows, on its retreat from multi-year highs above 158.00, and has advanced to consolidate at the 155.50 area.    

The Japanese yen eases on a moderate risk appetite

The safe-haven yen has lost ground on a very calm session on Monday, with the risk-sensitive pound supported by a mild appetite for risk. In absence of key macroeconomic releases, market sentiment has remained fairly positive, with the major stock indexes in the green.

From a wider perspective, however, the major currencies have been trading without a clear direction, with the investors reluctant to place large bets ahead of a string of high-relevance events due later this week.

The monetary policy releases by the Bank of Japan, Bank of Canada, and the European Central Bank, plus the preliminary estimations of US Q3 Gross Domestic product data are expected to open a new impulse to the market and st the near-term direction for the major crosses.

GBP/JPY: Aiming towards the 158.22 high – DBS Bank

The pound remains biased higher, according to Benjamin Wong, Strategist at DBS Bank, heading to levels past 158.00:  “A quick look at the daily Ichimoku charts shows bullish momentum remains in a feverish pitch, and there is no affirmation that the 158.22 highs are a verified absolute top. Hence, we remain open to the possibility of the cross assailing higher levels before it ends terminally the bull run that currently came off 148.47, the July 2021 lows.”

Technical levels to watch