FXStreet (Córdoba) – The pound managed to erase losses and is now above the level it closed on Friday, about to post the strongest daily close since late August.
GBP/JPY fills gap, rises to test Nov highs
The pound started the week considerably lower against the Japanese yen with a bearish gap. After ending on Friday around 186.80, it opened the week at 186.20. It bottomed at 185.99 and then bounced to the upside, as risk aversion eased.
Initially it closed the gap and then rose above 187.00. During the American session a weak yen pushed GBP/JPY even further. The pair peaked at 187.43, barely below November highs.
Currently it trades at 187.30/40, 140 pips above daily lows. A consolidation around current levels could open the door for more gains in the medium term. The other key resistance could be seen at 187.80, where the 100-day MA stands.
(Market News Provided by FXstreet)