On Friday, there was a trend of buying the GBP/JPY currency pair at a lower price, resulting in a new high for several years.

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• GBP/JPY attracts some dip-buying on Friday and hits a fresh multi-year peak on Friday.

The pair currently trades last at 179.04.

The previous day high was 179.4 while the previous day low was 177.26. The daily 38.2% Fib levels comes at 178.59, expected to provide support. Similarly, the daily 61.8% fib level is at 178.08, expected to provide support.

The GBP/JPY cross reverses an Asian session dip to the 178.80 region and spikes to a fresh high since December 2015 after the Bank of Japan (BoJ) announced its policy decision.

As was widely expected, the Japanese central bank stuck to its dovish stance and left its ultra-loose policy settings unchanged at the end of the June monetary policy meeting this Friday. Apart from this, reduced bets for an intervention by the Japanese government to stabilize the domestic currency, along with a generally positive tone around the equity markets, weigh on the Japanese Yen (JPY). This, in turn, assists the GBP/JPY cross to attract some dip-buying on the last day of the week.

The British Pound (GBP), on the other hand, continues to draw support from expectations that the Bank of England (BoE) is not yet done with rate increases as inflation in the UK, which, at 8.7% YoY in April, is still more than four times the 2% target. In fact, the markets have fully priced in another 25 bps lift-off, from 4.5% to 4.75% on June 22. Moreover, investors now see a greater chance that the rate will peak at 5.5% later this year. This is seen as another factor acting as a tailwind for the GBP/JPY cross.

That said, the Relative Strength Index (RSI) on the daily chart is flashing overbought conditions and might hold back traders from placing fresh bullish bets around the GBP/JPY cross. Investors might also prefer to move to the sidelines and now look to BoJ Governor Kazuo Ueda’s comments for a fresh impetus. Nevertheless, spot prices remain on track to register strong weekly gains and seem poised to prolong its recent strong upward trajectory witnessed over the past five weeks or so.

Technical Levels: Supports and Resistances

USDJPY currently trading at 179.04 at the time of writing. Pair opened at 179.39 and is trading with a change of -0.2 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 174.13, 50 SMA 170.67, 100 SMA @ 166.2 and 200 SMA @ 165.04.

The previous day high was 179.4 while the previous day low was 177.26. The daily 38.2% Fib levels comes at 178.59, expected to provide support. Similarly, the daily 61.8% fib level is at 178.08, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 177.97, 176.55, 175.83
• Pivot resistance is noted at 180.11, 180.82, 182.24

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