GBP/JPY Seems to Build on to Its Strength above 159.00 Handle

GBP/JPY Seems to Build on to Its Strength above 159.00 Handle

18 May 2016, 14:30
Roberto Jacobs
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GBP/JPY Seems to Build on to Its Strength above 159.00 Handle

Extending its bid tone through the European trading session, the GBP/JPY pair got a boost from the latest 'Brexit' polls results, lifting the pair to 159.00 handle.

Lead for the 'Remain' camp continues to extend supportive hand for the GBP/JPY bulls, which also seems be benefited from today's better-than-expected UK employment data.

Moreover, a minor risk-on rally across European equity markets also seems to dampen the safe-haven appeal for the Japanese currency, thus boosting the demand the GBP/JPY cross.

From technical perspective, the pair is comfortably trading above 50-day SMA region and has also absorbed supply at 159.00 handle and hence, seems more likely to extend its near-term upward trajectory.

Technical levels to watch

On a sustained trade above 159.00 handle, the pair seems to aim towards testing its next major resistance near 159.70-75 horizontal zone. Should the momentum turn out to be strong enough to break past 159.70-75 resistance, it is likely to assist the pair further towards 100-day SMA resistance near 162.50 level in the near-term.

Meanwhile, weakness towards 50-day SMA near 158.00-158.10 region now seems to be bought into, restricting the weakness near 157.80 area.


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