GBP/JPY Spikes Above 159.00 Handle After Latest ‘Brexit’ Polls

GBP/JPY Spikes Above 159.00 Handle After Latest ‘Brexit’ Polls

24 May 2016, 11:29
Roberto Jacobs

GBP/JPY Spikes Above 159.00 Handle After Latest ‘Brexit’ Polls

The GBP/JPY pair staged a smart good recovery from 50-day SMA support near 158.00 mark to currently trade back above 159.00 round figure mark.

On Tuesday, GBP pairs gained traction after the latest 'Brexit' poll results from ORB International for the Daily Telegraph showed the 'Remain' camp maintaining their lead with 55% votes compared to 42% for the 'Leave' camp.

Moreover, a sharp rebound in European equities also seems to dent the safe-haven appeal of the Japanese currency resulting into a sharp move back above 159.00 for the GBP/JPY pair.

From technical perspective, the pair recent fall from last week's high of 161.63 to 158.00 touched on Monday might now be looked upon as a corrective move within the pair's near-term recovery trend.

Technical levels to watch

From current levels, the pair seems to make a dart towards 160.00 psychological mark, which if conquered would set the stage for a further up-move back towards retesting last week's highs resistance near 161.60-65 region, also coinciding with 100-day SMA.

Meanwhile on the downside, 50-day SMA near 158.00 region now seems to have emerged as immediate strong support and only a decisive weakness back below this immediate support might negate the bullish outlook and drag the pair back towards 156.00-155.95 strong horizontal support.


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