GBP/JPY Reclaims 160.00 with Ease, Now Aiming 161.50
The British Pound continues to gain traction against its Japanese counterpart, with the GBP/JPY pair surging past 160.00 handle with ease after BoE's testimony before Parliament's Treasury Committee.
The pair's recovery from 158.00 level gained momentum after the release of latest 'Brexit'
poll results that showed overall lead for the 'Remain' camp. Adding to
it, green tick across European equity markets dented demand for the
perceived safe-haven currency, Japanese currency. GBP bulls got an
additional boost after BOE MPC Annual Report indicated that UK inflation
is likely to rise gradually through 2016, despite of the ongoing
uncertainty surrounding 'Brexit', which could be cause for an economic
slowdown and a sharp downfall for the British Pound.
The combination of developments resulted into a sharp surge for the
GBP/JPY pair to currently trade at the high point of the day at 160.30.
Technical levels to watch
Given the intensity of the up-move and a sustained trade above 160.00
clearly suggests that the pair from is more likely to extend its upward
trajectory back towards retesting last week's highs resistance near
161.60-65 region, also coinciding with 100-day SMA.
On the flip side, dip back below 160.00 handle might be bought into near
159.70 level. However, sustained weakness back below 159.70, leading to
a break below 159.50 level, might increase the pair's vulnerability to
drop back to 50-day SMA strong support near 158.00 round figure mark.
