GBP/JPY erases most of January’s losses, climbs above 143.00

GBP/JPY resumed yesterday the rally that started last week, during Theresa May Brexit speech. The pound continued to raise today and it reached the highest level in two weeks. Since last Tuesday it erased most of January’s losses. 

Today, on the back of a stronger pound across the board, GBP/JPY broke above 143.00 and climbed to 143.52. The pair is facing some resistance around 143.50 but holds near daily highs, consolidating important daily gains. 

The government said that will present tomorrow the legislation related to the Article 50 that will be voted in the Parliament. Its approval is needed, after yesterday’s ruling from the Supreme Court, to invoke the article and start the Brexit process. 

Mark Carney, Bank of England governor, spoke at a conference in Germany but did not discuss monetary policy or economic outlook. 

The yen is mostly lower in the market, affected by risk appetite. The Dow Jones index broke above 20,000 for the first time ever (it was up 0.80%) while US bonds were falling. The 10-year yield jumped from 2.465% to 2.531%, the highest since December 28.

Levels to watch 

To the upside, resistance levels might lie at 143.50/55 (daily high), 144.05 (Jan 6 high) and 144.70 (Dec 28 high). On the opposite direction, potential support areas are seen at 142.95 (Jan 6 low), 142.40 (Jan 5 low / Jan 24 high) and 141.80/85 (Jan 25 low).