FXStreet (Mumbai) – The British pound accelerated gains and rallied to fresh six and a half year highs the Japanese counterpart in the mid-Asian trades, pushing GBP/JPY higher towards 191 handle. The cross stormed its way through the 190 barrier after the yen was caught by a renewed offered tone across the board as traders continue to weigh BOJ’s comments.
GBP/JPY rises from 189.71
Currently, the GBP/JPY pair trades 0.40%% higher at 190.64, easing-off fresh multi-year highs reached last hours at 190.70. The GBP/JPY cross remains heavily bid largely on yen weakness after the USD/JPY pair hit fresh 12-year highs beyond 124 barrier.
Also, broad based US dollar strength on expectations of Fed rate hike this year following the recent series of upbeat US fundamentals weighs on the yen driving GBP/JPY to multi-year peak.
Moreover, the yen was also dragged lower by BOJ deputy governor Kikuo Iwata comments suggesting that the BOJ pushed back its timeline for reaching its inflation target to fiscal 2016. Further pressure came from Chief Government Spokesman Suga’s comments, saying that the current pace of decline of the yen did not reach undesirable levels.
Meanwhile, markets now turn their focus towards Japanese retail sales data and a set of US data due to be released tomorrow amid a data-quiet today’s trading session.
GBP/JPY Technical Levels
To the upside, the next resistance is located at 191 levels and above which it could extend gains 191.50 levels. To the downside immediate support might be located at 189.71 (Today’s Low) below that at 189.25 (May 27 Low) levels.
(Market News Provided by FXstreet)