The GBP/JPY rallies to fresh six-year highs above the 170.00 threshold as the Japanese Yen (JPY) gets hammered by the British Pound, which is posting a solid recovery after ebbing due to the mini-budget proposed by the ex-PM Liz Truss, replaced by Rishi Sunak. The arrival of Sunak was cheered by investors, as shown by the Pound Sterling, appreciating against most G8 currencies. At the time of writing, the GBP/JPY is trading at 171.20.
The GBP/JPY daily chart shows the pair is upward biased and with a clear path toward testing the February 2016 highs at around 175.01. However, as price action registers higher highs, oscillators, namely the Relative Strength Index (RSI) do not, so a divergence between price action and RSI could open the door for a reversal. The following key resistance areas are the psychological levels 172.00, 173, 00, and 174.00.
Otherwise, the GBP/JPY first support would be the 170.00 figure, which could open the door for further losses once cleared. The following support area would be the October 27 daily low at 168.82, followed by psychological 168.00.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.