- GBP/JPY advances for the third consecutive day, to highest since early May.
- Pound outperforms, hits one-month highs versus US dollar.
The GBP/JPY broke above 133.65 during the American session and jumped to 134.29, hitting the highest level since May 1st. It then pulled back and as of writing, it is hovering around 134.05/10, up more than a hundred pips from Friday’s close.
The move higher was driven by a rally of the British pound across the board. EUR/GBP plummeted from 0.9000, reaching levels under 0.8950 while GPB/USD spiked to 1.2488, a one-month high amid broad US dollar weakness.
The yen is posting mixed results. Equity prices in the US are mostly flat wile US yield are modestly higher. The Dow Jones is up just 0.07% while the S&P 500 gains 0.09%.
The GBP/JPY hold a bullish tone that was reinforced after the consolidation above 133.00, that now is a critical support. The immediate support stands at 133.65 (Asian session high). On the upside, the next barrier is seen at 134.45/50 followed by 134.85.