FXStreet (Mumbai) – The GBP/JPY pair appears on track to end the 6-week losing streak on the back of a corrective rally in Sterling and the drop in JPY demand amid risk-on rally in the equities.
GBP/JPY up 1.3% on the day
At 169.56, the cross is up 1.3% on the day. An upbeat UK public sector net borrowing figure triggered a corrective rally in the GBP that saw traders ignore a dismal UK retail sales figure.
Meanwhile, the ECB Draghi’s hint at more easing in March, chatter of BOJ easing next week and the spike in oil prices helped restore the risk-on sentiment in the equities. Consequently, the demand for the safe haven JPY dropped.
GBP/JPY Technical Levels
The immediate resistance is seen at 170.00, above which the cross could rise to 171.69 (Jan 12 high). On the other hand, a break below 10-DMA at 168.39 would expose 5-DMA support at 166.62.
(Market News Provided by FXstreet)