- GBP/JPY reversed an early dip and turned higher for the second straight session.
- The risk-on undermined the JPY’s safe-haven demand and remained supportive.
- The UK PM Spokesman’s latest update provided an additional boost to the GBP.
The GBP/JPY cross built on its goodish intraday positive move and spiked to over one-week tops, around the 134.65 region in the last hour.
A combination of supporting factors assisted the cross to gain traction for the second consecutive session on Tuesday and rally around 175 pips from the Asian session swing lows to sub-133.00 levels.
The British pound witnessed some selling during the early trading action on Tuesday after the UK Prime Minister Boris Johnson was moved to intensive care after his coronavirus symptoms worsened.
A solid recovery in the global risk sentiment, amid signs that the pandemic may be reaching its peak, undermined the Japanese yen's safe-haven demand and extended some initial support to the cross.
Meanwhile, the latest leg of a sudden pick up over the past hour or so came in reaction to the UK PM spokesman's update that Johnson is not on a ventilator and is receiving standard oxygen treatment.
The spokesman further added that the PM remains in good spirits and has not been diagnosed with pneumonia nor is required mechanical ventilation or non-invasive respiratory support.
The cross has now moved to the top end of a near two-week-old trading range. Hence, some follow-through buying might be seen as a key trigger for bullish traders and set the stage for additional gains.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected
USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.
AUD/USD stands firm above 0.6500 with markets bracing for Aussie PPI, US inflation
The Aussie Dollar begins Friday’s Asian session on the right foot against the Greenback after posting gains of 0.33% on Thursday. The AUD/USD advance was sponsored by a United States report showing the economy is growing below estimates while inflation picked up.
Gold soars as US economic woes and inflation fears grip investors
Gold prices advanced modestly during Thursday’s North American session, gaining more than 0.5% following the release of crucial economic data from the United States. GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the US Fed could lower borrowing costs.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
Bank of Japan expected to keep interest rates on hold after landmark hike
The Bank of Japan is set to leave its short-term rate target unchanged in the range between 0% and 0.1% on Friday, following the conclusion of its two-day monetary policy review meeting for April. The BoJ will announce its decision on Friday at around 3:00 GMT.