The British pound pares some Thursday’s losses during the New York session gains 0.31%, trading at 150.45 at the time of writing. In the American session, a risk-on market mood kept safe-haven currencies like the JPY low. Also, major US equities are rising between 0.51% and 0.90%, while the US 10-year Treasury yield is flat at 1.485%.

Apart from that, the GBP/JPY pair fluctuated around the 149.75-150.25 range during the overnight session. When Wall Street opened, the cross-currency dropped from 150.20 to the bottom of the aforementioned range, as investors weighed the US inflation figures, which showed that the uptrend in elevated prices had not peaked yet. Then, once the report was dissected and market mood improved, that boosted risk-sensitive currencies, in this case, sterling, advancing sharply towards 150.34, as the European session ended.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

GBP/JPY justifies the run-up beyond a weekly triangle and 200-HMA, refreshing intraday high around 150.50 during early Monday. The cross-currency pair also takes clues from bullish MACD signals to keep buyers hopeful.

It should be noted, however, that a descending trend line from December 01, around 150.85, probes the GBP/JPY buyers ahead of directing them to the 151.00 threshold and the monthly peak of 151.44. 

Following that, 50% and 61.8% Fibonacci retracement levels of November 23 to December 03 downside, around 151.60 and 152.65 in that order, will challenge the pair’s further upside momentum.

Meanwhile, the 200-HMA level of 150.27 will precede the stated triangle’s resistance line, now support around 150.00, to restrict the short-term GBP/JPY declines.

Adding to the downside filters is a one-week-old rising trend line, forming part of the triangle, near 149.70.

GBPJPY Ready for More Gains

Dec 13 2021

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