GBP/JPY moves back above 138.00 mark, highest since June 9


  • GBP/JPY gains traction for the fifth consecutive session on Friday.
  • The GBP bulls seemed unaffected by renewed lockdown in the UK.
  • Receding demand for the safe-haven JPY remained supportive.

The GBP/JPY cross jumped to over 1-1/2-month tops during the mid-European session, with bulls now eyeing a move towards reclaiming the 138.00 round-figure mark.

The cross added to this week's positive move and gained some strong follow-through traction on Friday, marking the fifth consecutive day of a positive move. The uptick was supported by a combination of supporting factors – the strong bid tone surrounding the British pound and receding demand for the safe-haven Japanese yen.

The sterling maintained its bullish bias on the last trading day of the week and seemed rather unaffected by new restrictions on 4.3 million people in northwest England. The UK government imposed a tougher lockdown in Greater Manchester, parts of West Yorkshire and East Lancashire after the recent rise in new coronavirus cases.

On the other hand, a modest pickup in the US equity futures undermined demand for traditional safe-haven currencies, including the Japanese yen. This, in turn, provided an additional boost to the GBP/JPY cross and was seen as one of the key factors behind the latest leg of a sudden spike over the past hour or so.

From a technical perspective, the GBP/JPY cross has been trending higher along a one-month-old ascending channel. Given that the GBP has shown little signs of bullish exhaustion, the momentum should lift the cross towards the channel resistance, currently near the 138.60 region. Nevertheless, the cross remains on track to post strong gains for the second consecutive week, also marking the fifth week of a positive move in the previous six.

Technical levels to watch

GBP/JPY

Overview
Today last price 137.86
Today Daily Change 0.71
Today Daily Change % 0.52
Today daily open 137.15
 
Trends
Daily SMA20 135.35
Daily SMA50 134.67
Daily SMA100 133.55
Daily SMA200 137.55
 
Levels
Previous Daily High 137.39
Previous Daily Low 136.07
Previous Weekly High 136.63
Previous Weekly Low 134.35
Previous Monthly High 139.74
Previous Monthly Low 131.77
Daily Fibonacci 38.2% 136.88
Daily Fibonacci 61.8% 136.57
Daily Pivot Point S1 136.35
Daily Pivot Point S2 135.55
Daily Pivot Point S3 135.03
Daily Pivot Point R1 137.67
Daily Pivot Point R2 138.19
Daily Pivot Point R3 138.99

 

 

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