Today’s analysis will focus on the GBP / JPY currency pair.
GBP / JPY continued its slow uptrend during the trading day and almost hit a new high. The old high of September 1, 2020 at 142.714 was clearly exceeded.
From a technical perspective, the pair remains bullish thanks to the recent gains. The pound sterling as a currency is receiving a fundamental boost here from the British government’s vaccination program. More than 7.6 million first vaccinations have already been administered here.
This sterling strength is also noticeable from a technical perspective. Looking at the moving averages, it is noticeable that the 20-day line (blue line) has repeatedly been used as a strong support.
The next target is the high of February 21, 2020 just below 145.00. Next, the December 2019 high above 147.00 could be targeted.
However, the currency pair looks subordinate to overbought. This is where we see if fundamental sterling strength and current yen weakness persist.