GBP/JPY Spikes On Brexit Poll, Macro Level 163.00 Taken Out
GBP/JPY has seen some huge buying flows ever since the open of trading in Tokyo, last trading at 163.30 after a topside resolution through 163.00 macro level, mainly led by a higher GBP/USD, which combined with a much stronger Nikkei 225 (resulting on a solid bounce in USDJPY), has led to the one-way street move in GBP/JPY.
GBP flows drive GBP/JPY
In order to justify the move in the Pound, which appears to be quite unusual at this time of the day (GBP/JPY tends to be driven by JPY flows rather than fresh buyign off GBP), one can find on the latest latest ORB poll (phone-type) on Brexit some clues, as this revealed that stay in reached a 51%, while get out stood at 46%.
Technicaly, GBP/JPY has seen a convincing move beyond a major resistance level at 163.00, setting the stage for what may be the next bullish cycle in the pair, one that could see the pair approach 164.00 as the next big target moving into Tuesday, when markets return to normality after Monday's bank holidays in UK/US. On the downside, any retracement should be perceived as value for buyers as long as no structural bearish breaks occur, which in the case of GBP/JPY, would represent sellers re-claiming at least 162.50, with acceptance below.