GBP/JPY hits fresh seven-month highs but remains limited by 143.30
- Pound rises versus Japanese yen as equity prices rebound on trade war headlines.
- GBP/JPY remains at the monthly top, ahead of UK elections.
The GBP/JPY rose to 143.27 earlier today reaching the highest level since mid-May. Then pulled back and as of writing trades at 143.10/15, off highs as the pound loses momentum. The yen is among the worst performers offering support to the GBP/JPY. Regarding the pound, it remains relatively steady ahead of Thursday’s elections.
The Japanese currency dropped across the board following reports that the US was planning to delay the new tariffs to Chinese products set to kick in on Sunday. Wall Street indexes turned positive and European stocks trimmed losses.
Technical outlook
The pound reached fresh highs but it pulled back to the previous range, between 143.20 and 142.50. The bullish bias in GBP/JPY is intact and even a break under 142.50 would point to a correction but not a change in the main trend. Below that level, the next support might be seen at 141.70 followed by the 20-day moving average 141.35.
On the upside, a consolidation above 143.20 would open the doors to more gains. The next resistance is located at 143.75 followed by the 144.00 area.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
