Market Spotlight: GBPJPY Finally Breaks (Nearing First Target)

35561 market spotlight gbpjpy finally breaks nearing first target

For those of you tracking the Market Spotlight you’ll know I’ve been looking for GBPJPY to break for pretty much all of the year so far. This week the trade finally came to fruition with the pair blowing through the 157.88 level and now just about to hit the the initial target at 159.98.There is plenty of momentum behind this move and with the retail market heavilyshort, the focus is on a continuation higher towards the next target at 162.59. Central bank expectations are heavily divergent between the BOE and BOJ, a theme which looks likely to continue near term, keeping the pair supported.Keep An Eye OnThe current recovery in risk appetite is weighing sharply on JPY and, while this theme continues, there is plenty of room for GBPJPY to keep pushing higher. Looking ahead this week, data wise, the UK CPI release tomorrow is likely to put further upside pressure on GBP, confirming another month of upward price movements in the UK.

Source: Tickmill

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