GBP/JPY stuck in a range around 160.00 neighborhood

By FXStreet Despite the GBP/JPY pair seems to confront supply pressure above 161.00 handle, a strong recovery trend from early May lows has kept the pair buoyant above 160.00 handle.

Of late, diminishing ‘Brexit’ fears coupled with the release of some upbeat economic data from the UK have acted as supportive pillars for the British Pound’s up-move. Moreover, a minor up-tick in global risk-on sentiment is acting as a catalyst to suppress the safe-haven appeal of the Japanese currency. The combine effect has led the GBP/JPY pair to extend its recovery for second straight week and reclaim 160.00 psychological mark.

As traders seem to lock-in some profit in the GBP/USD major ahead of a weekend, the GBP/JPY cross is likely to be confined in a narrow trading range.

Technical levels to watch

The pair needs to build on to its momentum above 161.00 handle in order to attempt a move towards 100-day SMA resistance near 162.20-30 region.

Conversely, drop below 160.00 psychological mark now seems to find immediate support near 159.40 level, which if broken might drag the pair towards 159.00 round figure mark. This 159.00 level now seems to restrict any near-term downfall for the pair.
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Source:: FX Street