Economy Forex News

GBP/JPY rises to new multi-year high above 157.50

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  • A combination of factors pushed GBP/JPY to new multi-year highs on Tuesday.
  • Recent hawkish signals from the Bank of England continued to underpin sterling.
  • The risk appetite mood undermined the safe haven JPY and contributed to the rally.

The GBP/JPY pair added to its intraday gains and soared to the highest level since June 2016 around the 157.60 region during the first half of the European session.

GBP/JPY

MetaNews.

Following the previous day’s price consolidation moves, the GBP/JPY pair caught fresh bids on Tuesday. Furthermore resumed its strong upward momentum seen since the start of this month. There were multiple factors supporting this move, marking the ninth consecutive positive day in the previous ten.

In recent days, Bank of England officials have made hawkish comments, suggesting an imminent hike in interest rates later this year. BoE Governor Andrew Bailey said the central bank must act amid rising risks to medium-term inflation expectations.

Sterling continues to benefit from a positive Brexit development, which provided a strong boost to the GBP/JPY pair. The European Union agreed to remove most controls on goods entering Northern Ireland from the rest of the UK.

On the other hand, underlying bullish sentiment in financial markets undermined the relative safe haven status of the Japanese yen. As a result, some trading stops were placed near the 157.35-40 area as another contributing factor to the GBP/JPY pair’s upward trajectory.

In the absence of any major market-moving economic releases, it appears that the GBP/JPY pair will continue to appreciate. In any case, the extremely overbought conditions on the short-term charts warrant caution for bullish traders ahead of Wednesday’s UK consumer inflation figures.

Technical levels

OVERVIEW
Today’s Last Price 157.84
Daily Rate 0.90
Today’s Daily Rate % 0.57
Daily Open 156.94

TRENDS
20 Daily SMA 152.35
50 Daily SMA 151.78
100 Daily SMA 152.5
200 Daily SMA 150.89

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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