GBP/JPY hits one-week highs above 151.00 as US yields rise
- Weaker yen across the board boost GBP/JPY.
- Cross gains for the third consecutive day, off monthly lows.
Market participants await Friday’s Jackson Hole speed by Fed Chair Powell.
A rally in USD/JPY boosted the GBP/JPY cross that climbed to 151.22, reaching the highest level in a week. The pound is hovering around 151.00, still unable to hold clearly above.
The Japanese yen is among the worst performers on Wednesday amid a sharp decline in US bonds. The 10-year yield jumped to 1.34%, the highest since August 13. Also, the improvement in risk sentiment weighs on the yen. The Dow Jones is up by 0.33%, and the Nasdaq gains 0.11%.
Technical outlook
In the short term, GBP/JPY is moving with a bullish bias. If it holds above 151.00, it could rise further toward the next resistance seen at 151.30/35 ahead of the stronger obstacle at 151.55.
The immediate support in the cross might be seen at 150.75 and then at 150.55, a short-term uptrend line that if broker should clear the way to more losses, toward 150.30 first and then to a test of 150.00/05.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
