GBP/JPY - a new addition to my watchlist...
The non-Dollar G10s have largely been at the whim of their US peer, with intermittent diversions and deviations, as the POUND kicked off 2021 on a firm footing after the UK and EU managed to pull a Brexit deal out of the bag just before the New Year’s Eve transition deadline. Cable peaked just over 1.3700 and Eur/Gbp troughed around 0.8945, but it’s been a case of Sterling erosion since the festive season ended due in part to a 3rd national lockdown and growing concerns over the fallout from a new more transmissible strain of COVID-19. Similar story for the EURO after a couple of efforts to breach 1.2350, as tighter virus restrictions offset any good news in the form of data, and Eur/Usd has subsequently lost momentum through the 10 DMA to rigorously test the resolve of bids into 1.2200 and the 21 DMA. Elsewhere, the YEN and FRANC have fallen foul to the aforementioned avid risk appetite, with the former also conforming to UST-JGB yield differentials as Usd/Jpy rebounded sharply from 102.60 to almost 104.10 vs Usd/Chf’s 0.8758-0.8884 extremes. Gbp/Jpy currently is showing the highest probability of a volatile move inline with the multi-month highs being breached. 130 pips is on the books.
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Note
GBP/JPY moving into new highs.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.