GBP/JPY climbs back above 150.00, ready to test last week highs

• Pound holds steady versus US dollar, gains versus other G10 currencies.
• Japanese yen under pressure as US yield remains near recent highs and as Wall Street rises.

The GBP/JPY is trading back above the 150.00 mark after finding support earlier on Monday at 149.60. As of writing, it is hovering around 150.50, looking at the 2021 high it reached last week at 150.7.

The combination of a steady pound and a weaker yen keeps GBP/JPY well supported and ready to extend the rally. The pound is trading sideways versus the US dollar, on the day the DXY hit fresh three months highs above 92.00. EUR/GBP is about to post the lowest daily close in a year as it trades below 0.8600.

Regarding the Japanese yen, higher US yields continue to limit any recovery. The 10-year stands at 1.59%, up 1.79% for the day. The trend in yields remain firm, so it does the USD/JPY. Also contributing to weakening the yen are US stocks. In Wall Street, main stocks indices are up. The Dow Jones gains by 0.62% and the Nasdaq erased losses and rises by 0.15%.

From a technical perspective, the positive momentum in GBP/JPY will remain intact while it keeps 149.40. A consolidation above 150.50 should lead to a test of 150.72 (March 4 high) and then to the 151.00 area, which would put the pound at the highest level in almost three years.

Technical levels