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GBP/JPY clocks fresh 2-week tops at 149.70 on Brexit optimism

  • Broad GBP strength amid Brexit optimism underpins.
  • Yen gaining ground on BoJ Nakaso’s comments?
  • Fast approaching 150 - psychological levels

The cross in GBP/JPY pair rallies hard to regain 149.50 barrier on a break higher from just below the 149 handle, as the pound continues to get a boost from the hopes of a Brexit bill agreement.

GBP/JPY takes a flight towards 150 levels

The cross staged a solid 80-pips bounce, tracking the ongoing rally in Cable, as the latest reports of the UK and EU agreeing on the Brexit bill offer continue to remain supportive. Britain agrees to liabilities worth €100bn but will aim to pay less than half - Financial Times

Moreover, the spot remains unfazed by the latest North Korean missile threat, as the safe-haven Yen fails to benefit amid downbeat Japanese retail sales data and BoJ board member Nakaso’s comments. Nakaso, in his additional comments, said that he is confident that BOJ can successfully engineer an exit from the ultra-easy policy.

Focus now shifts towards the US GDP report, BOE Governor Carney’s speech and Yellen’s testimony for the next direction.

GBP/JPY Technical Levels

Higher-side levels: 150 (round figure), 150.50 (psychological levels), 150.79 (classic R2/ Fib R3)

Lower-side levels: 148.92/87 (20 & 5-DMA), 148.64 (10-DMA), 148.49 (daily pivot)

EUR/GBP flirting with lows, around 0.8840 level

   •  Positive Brexit news exerting pressure for the third straight session.    •  Weakness below 0.8840 level to confirm a near-term bearish break. 
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