GBP/JPY closed Wednesday's European session at 215.097, up 74 pips from Monday's open at 214.351. The cross has pushed as high as 215.520 and found support at 214.154 so far this week.
The yen's broad weakness accelerated Tuesday when USD/JPY hit 160, prompting Japan's finance minister to issue verbal warnings about excessive currency moves. Despite the intervention rhetoric, GBP/JPY continued grinding higher, with sterling benefiting from the yen selloff.
No major UK or Japanese data releases are scheduled for Thursday or Friday. If USD/JPY stays above 160 and Japan remains on the sidelines, GBP/JPY could test 216.00. If actual intervention materializes, the cross could quickly reverse toward 214.00.
Traders are positioned 54.5% long and 45.5% short as of Wednesday morning. The slight bullish tilt suggests the market expects Japan's warnings to remain just words, keeping the path of least resistance higher for now.
The 215.50 area has capped gains twice this week. If price breaks and holds above it, 216.00 becomes the obvious target. If it fails here again, Tuesday's low at 214.782 offers the first support. Trade GBP/JPY with tight spreads at LHFX.
Byline: LHFX Research
Risk disclaimer. CFD trading involves substantial risk and is not suitable for every investor. Leverage works both ways and can amplify losses beyond your initial deposit. The analysis above is general market commentary and does not constitute investment advice or a recommendation to buy or sell any instrument. LHFX is regulated by the FSC Mauritius and the FSCA in South Africa.
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ONYO LA HATARI
Biashara ya margin katika sarafu za kigeni, mali za kidijitali au bidhaa nyingine za nje ya soko kwa margin inabeba kiwango cha juu cha hatari na inaweza kutoendana na kila mtu. Tunakushauri uzingatie kwa makini kama biashara inakufaa kwa kuzingatia hali yako binafsi.
CFD ni vyombo tata na vinabeba hatari kubwa ya kupoteza fedha kutokana na leverage. Fikiria kama unaelewa jinsi CFD zinavyofanya kazi na kama unaweza kumudu hatari kubwa ya kupoteza fedha.
Kodi inaweza kulipwa kwa faida yoyote na unapaswa kutafuta ushauri huru kuhusu hali yako ya kodi.