- GBP/JPY rises to two-month highs on Friday.
- Sterling stumbles higher as risk appetite returns.
- GBP set for best weekly performance in five months.
GBP/JPY breaks through the 185.00 handle as the market heads into the final hours of the trading week, moving to an 8-week high as the broad market willingness to take risks finds a solid recovery.
The Japanese Yen (JPY) has been on the back foot after the dovish Bank of Japan (BoJ) recently destroyed all their own hard work verbally defending the beleaguered JPY.
The pound sterling (GBP) is climbing the charts, pushing to the front of the pack to emerge as one of the winners on Friday, rebounding firmly against the yen despite a post-match midweek wobble. Bank of England (BoE) kept rates on hold once again.
Economic data in relation to GBP/JPY, it remains weak into next week and GBP traders will be looking ahead to BoE Governor Andrew Bailey’s speech next Wednesday, while Yen investors will want to keep an eye on Japan’s payrolls due out early on Tuesday, followed by Trade Balance numbers JPY on Wednesday.
GBP/JPY Technical Outlook
GBP/JPY bounced off an intraday rising trend line drawn from last week’s low near 180.80 and the pair is now trading at an 8-week high near the 150.0 key handle.
Daily candlesticks have GBP/JPY trading back to the upper side of the 50-day simple moving average (SMA), which is currently grinding sideways near the 183.00 handle, and the bullish extension sets the Guppy up for a breakout of the 2023 highs. 186, 77.
Technical support is weak on the downside, but GBP/JPY sellers will be keeping a close eye on the action pulling back to the last big swing to the 178.00 level in early October.
GBP/JPY hourly chart
GBP/JPY Daily Chart