GBP/JPY Jumps Above Hourly 200-MA
Offered tone around JPY strengthened amid risk-on in equities, pushing the GBP/JPY cross above hourly 200-MA level of 155.42.
Rises for third consecutive day
The
cross is trading higher for the third consecutive day. JPY was
overbought and thus due for correction. Meanwhile, strong UK CPI report
added to the bid tone around Sterling. Upbeat China data triggered a
wave of risk-on in equities in Asia and Europe and that is weighing over
Yen.
However, Cable is reducing the pace of gains in the cross
as it slumped to 1.42 before recovering to 1.4235 levels. Ahead in the
day, action in Cable and US stock equities would be on the watch list of
traders.
GBP/JPY Technical Levels
A
break above immediate resistance at 155.90 (10-DMA) would expose 158.45
(Mar 24 low). On the other hand, violation at the immediate support of
154.74 (daily low) would open doors for a re-test of 153.76 (5-DMA).
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