GBP/JPY hits fresh YTD tops, eyeing to reclaim 145.00 mark
- GBP/JPY quickly reversed an early dip and turned positive for the third straight day.
- The British pound got a modest lift following the release of UK Manufacturing PMI.
- The JPY trimmed early gains – led by coronavirus worries – and remained supportive.
The GBP/JPY cross jumped to fresh YTD tops on the last trading day of the week, with bulls now eyeing a move beyond the key 145.00 psychological mark.
Following an early European session dip to the 143.75-70 region, the cross attracted some aggressive buying interest and turned positive for the third consecutive session on Friday. The uptick was primarily led by a modest rebound in the British pound, which gained some traction in reaction to upbeat UK Manufacturing PMI.
GBP/JPY supported by a combination of factors
According to IHS Markit/CIPS data, the UK manufacturing sector activity expanded at its fastest rate in 10- months during February. The gauge jumped to 52.8 from January's final reading of 50.1. This helped offset a slight disappointment from the Services PMI, falling to a two-month low level of 53.3, and provided a modest lift to the British pound.
On the other hand, the Japanese yen trimmed a part of its early strong gains – led by fresh worries over the outbreak of the deadly coronavirus – and remained supportive. The cross has now rallied over 100 pips and a subsequent strength beyond the 145.00 mark should set the stage for an extension of the bullish momentum witnessed over the past two weeks.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
