GBP/JPY rises above 154.00 to highest since June 2016

GBP/JPY up almost 200 pips.
A stronger pound triggered the rally that was reinforced from a slide of the yen.

Matías Salord FXStreet

The GBP/JPY pair broke above 153.65 and jumped to 154.27, reaching the highest levels since the post-Brexit referendum. It was holding near the top, consolidating gains and headed toward the highest close since the day of the referendum.

The pair was rising modestly and accelerated to the upside during the Londox fix amid a rally of the pound with no particular catalyst behind. Afterwards while GBP/USD was retreating sharply from 1.3945 back under 1.3900, the rally of USD/JPY offered another boost to GBP/JPY.

The combination of a stronger pound first and then a slide of the yen amid rising equity prices in Wall Street sent GBP/JPY sharply higher.

Technical Levels

To the upside, resistance levels might be located at 154.25/30 (Jan 17), 155.00 (psychological) and 155.80/85. On the flip side, support might now lie 153.65 (last week high), 152.80 and 151.90 (weekly low).

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.

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