The GBPJPY pair surges strongly to reach a high not seen in almost two weeks due to intense selling pressure on the Japanese yen.

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• GBP/JPY rallies hard to a nearly two-week high amid aggressive selling around the JPY.

The pair currently trades last at 182.425.

The previous day high was 180.72 while the previous day low was 179.74. The daily 38.2% Fib levels comes at 180.11, expected to provide support. Similarly, the daily 61.8% fib level is at 180.34, expected to provide support.

The GBP/JPY cross catches aggressive bids on Friday and jumps back above the 182.00 round-figure mark during the early the European session, recovering its weekly losses registered over the past four days. Spot prices rally to a nearly two-week high in the last hour and currently trade around the 182.35-182.40 region, up over 1% for the day

The Japanese Yen (JPY) tumbles across the board in reaction to reports, citing sources familiar with the matter, that the Bank of Japan (BoJ) was leaning toward maintaining its yield curve control (YCC) strategy at its monetary policy meeting next week. This overshadows data showing that inflation in Japan remained above the central bank’s 2% target for the 15th straight month in June and undermines the JPY, which, in turn, provides a strong boost to the GBP/JPY cross.

The British Pound’s (GBP) relative outperformance could further be attributed to the better-than-expected release of the UK Retail Sales report released on Friday. That said, diminishing odds for more aggressive policy tightening by the Bank of England (BoE), bolstered by Wednesday’s softer UK consumer inflation figures, might hold back traders from placing aggressive bullish bets around the GBP and cap the upside for the GBP/JPY cross, at least for the time being.

The market focus now shifts to the highly-anticipated two-day BoJ meeting starting next Thursday. The decision is scheduled to be announced next Friday, which should provide a fresh directional impetus to the GBP/JPY cross. Nevertheless, spot prices seem poised to register modest gains for the first time in the previous three-week and remain well within the striking distance of the highest level since December 2015, around the 184.00 mark touched earlier this month.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 182.45 at the time of writing. Pair opened at 180.24 and is trading with a change of 1.23 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 182.19, 50 SMA 177.76, 100 SMA @ 171.47 and 200 SMA @ 167.54.

The previous day high was 180.72 while the previous day low was 179.74. The daily 38.2% Fib levels comes at 180.11, expected to provide support. Similarly, the daily 61.8% fib level is at 180.34, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 179.74, 179.25, 178.76
• Pivot resistance is noted at 180.73, 181.21, 181.71

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