GBP/JPY jumps above 140.00 mark, back closer to multi-month tops


  • A combination of factors assisted GBP/JPY to gain some strong positive traction on Thursday.
  • Hopes for a last-minute Brexit deal provided a strong lift to the GBP and remained supportive.
  • COVID-19 vaccine optimism undermined the safe-haven JPY and contributed to the bid tone.

The GBP/JPY cross surged past the key 140.00 psychological mark and climbed back closer to near three-month tops set in the previous day.

Ireland’s Foreign Minister Simon Coveney said this Thursday that there was a good chance that Britain and the European Union would secure a trade deal in the next few days. Separately, the British Education Secretary Gavin Williamson commented that the UK and EU are making good progress on the Brexit trade deal negotiations.

This, in turn, revived hopes for a last-minute Brexit deal and provided a goodish lift to the British pound. The GBP/JPY cross built on the overnight rebound from sub-139.00 level and largely shrugged off pessimism led by comments from an EU diplomat, saying that issues such as the level playing field and fisheries are still outstanding.

On the other hand, the first approval of a vaccine for the highly contagious coronavirus disease undermined the Japanese yen's relative safe-haven status against its British counterpart. This was also cited as another factor driving the GBP/JPY cross, which has now moved well within the striking distance of the 140.35-45 supply zone.

It will now be interesting to see if bulls are able to capitalize on the momentum or opt to take some profits off the table at higher levels. Nevertheless, the incoming Brexit-related headlines will continue to play a key role in influencing the GBP price dynamics and produce some meaningful trading opportunities around the GBP/JPY cross.

Technical levels to watch

GBP/JPY

Overview
Today last price 140.22
Today Daily Change 0.53
Today Daily Change % 0.38
Today daily open 139.69
 
Trends
Daily SMA20 138.51
Daily SMA50 137.16
Daily SMA100 137.5
Daily SMA200 135.58
 
Levels
Previous Daily High 140.45
Previous Daily Low 138.9
Previous Weekly High 139.86
Previous Weekly Low 137.89
Previous Monthly High 140.32
Previous Monthly Low 134.87
Daily Fibonacci 38.2% 139.49
Daily Fibonacci 61.8% 139.86
Daily Pivot Point S1 138.91
Daily Pivot Point S2 138.12
Daily Pivot Point S3 137.35
Daily Pivot Point R1 140.46
Daily Pivot Point R2 141.23
Daily Pivot Point R3 142.02

 

 

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