GBP/JPY: hard rally post May's Brexit speech

Ross J Burland FXStreet

Currently, GBP/JPY is trading at 139.85, up 1.74% on the day, having posted a daily high at 140.15 and low at 137.07.

PM May's conciliatory speech eases Hard-Brexit fears in the near-term - MUFG

GBP/JPY rallied hard on the back of UK P May's Brexit speech when She urged European officials not to "make Europe poorer to punish Britain". She has confirmed that the UK will leave Europe's single market, but will seek a deal that gives the greatest possible access, essentially warning Europe will suffer too if agreement can't be reached. She added that "no deal for Britain is better than a bad deal" and that if there was no deal, the UK can still trade (under WTO rules) and that (in a not particularly veiled threat), the UK has the freedom to set tax rates to attract foreign businesses, as explained by analysts at ING Bank, adding, "Moreover, not signing a deal with the UK would disrupt European supply chains and create barriers to exporting to the UK from Europe. She urged European officials not to "make Europe poorer to punish Britain".

GBP/JPY levels

Spot is presently trading at 139.86, and next resistance can be seen at 139.96 (Daily Classic R3), 140.15 (Daily High), 140.72 (Hourly 200 SMA), 140.81 (Weekly Classic PP) and 140.84 (Weekly High). Support below can be found at 139.10 (Hourly 100 SMA), 139.06 (Daily Classic R2), 138.27 (Daily Classic R1), 138.16 (Yesterday's High) and 138.14 (Hourly 20 EMA).

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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