GBP/JPY hits fresh highs at 169.85 on UK GDP

By FXStreet FXStreet (Mumbai) – The cross in the GBP/JPY rallied as high as 169.85 as the pound was lifted following the release of the prelim GDP report from the UK, which matched expectations.

GBP/JPY aims for 170 barrier

The GBP/JPY cross caught a fresh bid tone and extended its recovery from near 20-DMA after the in-line with estimates UK GDP numbers fuelled renewed optimism on the UK’s economic outlook and boosted the bids for the cable. At time of writing, GBP/JPY eases to 169.66, recording a 0.42% gain on the day.

Moreover, the upside in the cross can be partly attributed to the ongoing weakness in the Japanese currency amidst rising speculations that the BOJ could go for additional easing at its policy decision tomorrow.

GBP/JPY Technical Levels

To the upside, the next resistance lies at 170/05 (round number/ Jan 27 High), above which it could extend gains to 170.65 (daily R2). To the downside, the cross finds immediate support at 169.18/15 (5-DMA/ 20-DMA), below that 168.23 (10-DMA), could act as a major support.
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Source:: FX Street