GBP/JPY jumps toward 164.00, highest since December on Brexit deal
- Pound outperforms across the board on Monday, benefit from Brexit deal.
- UK and European Union reach a new deal to resolve the Northern Ireland trade issue.
- GBP/JPY rises above the 200-day Simple Moving Average.
The GBP/JPY is rising sharply on Monday boosted by a stronger Pound across the board amid the Brexit agreement. The cross rose to 163.98, the highest level since December 20.
Brexit: a new protocol for an old problem
UK Prime Minister Rishi Sunak is announcing a “decisive breakthrough in Brexit talks”. The new deal, according to Sunak implicates changes to the Northern Ireland protocol.
Sunak and European Commission President Ursula von der Leyen are offering a joint press conference, explaining the new deal.
Ahead of the announcement, the Pound was already trading in positive ground across the board. GBP/USD hit 1.2050 while EUR/GBP tested levels under 0.8800.
The GBP/JPY is up by around a hundred pips. The pair peaked at 163.98 and then pulled back modestly as equity prices in Wall Street move off highs. Price is back above the 200-day Simple Moving Average. A consolidation above 164.00 would open the doors for a test of the next resistance area seen at 164.70.
The bias in the short-term point to the upside. A confirmation under 161.70 would change the outlook to neutral/bearish.
Technical levels
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.
