GBP/JPY struggling to conquer 161.00 level

By FXStreet The GBP/JPY pair is once again reversing from 161.00 handle, confirming a strong supply zone around 4-week high levels and is currently trading at the mid-point of 160.00-161.00 handle.

On Tuesday, the GBP/JPY pair gained traction after the latest ‘Brexit’ poll results from ORB International for the Daily Telegraph showed the ‘Remain’ camp extending their lead to 55% compared to 42% for the ‘Leave’ camp. The pair rebounded from 50-day SMA support near 158.00 level and surged past 160.00 psychological mark with ease to retest its recent daily closing highs resistance near 161.00 area.

Meanwhile, the global risk-on rally across world equity markets seems to dent demand for the perceived safe-haven currency (JPY) and extend support to the GBP/JPY cross despite of a slightly depressed British Pound.

From technical perspective, the pair needs to sustain and build on to its strength above 161.00 handle in order to confirm additional recovery in the near-term.

Technical levels to watch

From current levels, last week’s high near 161.55-60 area, also coinciding with 100-day SMA remains immediate strong resistance to clear, which if conquered seems to boost the pair beyond 162.00 round figure mark towards its next major horizontal resistance near 162.65-70 area.

Alternatively, extension of the …read more

Source:: FX Street