GBP/JPY recovers, resumes climbing for 152.50

The Sterling is being buoyed by confidence in a Brexit deal and hope for a May BoE rate hike.
Little on the calendar leaves markets open to sentiment swings.

Joshua Gibson FXStreet

The GBP/JPY is lifting in the overnight session, trading into 152.25.

The pair fell into 151.70 from a session high of 152.60 in Tuesday's action as the Yen made a quick resurgence across the board as markets showed their nerves for a moment, but the pair has recovered and is making up the lost ground. The pair has traded up for two straight days as the Yen has receded across the broader market, and Sterling bulls are looking to get the pair back on the bull train after the GBP/JPY fell from an April high of 153.85.

The Sterling was forced into a corrective phase last week as a wide range of macro figures missed expectations and pushed out hopes of a Bank of England rate hike in May, but overall sentiment remains high and the run of middling economic figures has been forgotten as traders focus on Brexit this week. Some headlines from out of the UK are beginning to seem a bit hopeful once more, but there is still plenty of ground to cover for the EU and the UK to reach a full trade agreement when Brexit finalizes next March.

little is present on the economic calendar for Wednesday's Asia markets, and market volumes are likely to be thin with Australia shuttered for the Anzac Remembrance Day observance.

GBP/JPY Levels to watch

The bullish trendline remains firmly in place for the pair, and the last bounce from the swing low at 150.70 is acting as the new floor for the GBP/JPY, and a bullish run will have to mount resistance at the last high of 153.85 in order to begin challenging three-month highs above.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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