- GBP/JPY pulls back from a multi-year peak amid reviving demand for the safe-haven JPY.
- The BoJ’s dovish stance should cap gains for the JPY and limit the downside for the cross.
- Bets for more BoE rate hikes suggest that the path of least resistance remains to the upside.
The GBP/JPY cross ticks lower after touching its highest level since November 2015, around the 186.45 area, this Thursday and trades with a mild negative bias during the early part of the European session. The supportive fundamental backdrop, however, assists spot prices to hold above the 186.00 mark and supports prospects for an extension of the recent breakout momentum through the 184.00 round figure, or the previous YTD peak.
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