GBPJPY up over 1% on the day
The USDJPY is trending higher and is now trading at the highest levels since April 9 – moving above the May high at 109.78 in the process.
The GBPJPY is outpacing that trend move gain, with a run higher of over 1% for the GBPJPY pair. The GBP is the strongest of the majors on the back of comments from the BOE's Vlieghe who said that an early rate hike is possible if there is smooth transition from furlough.
Looking at the hourly chart above of the GBPJPY, the comments sent the pair racing away from its 100 and 200 hour moving averages near 154.20 and also above a topside trendline that cuts across at 154.36. The high price for May at 154.823 was also broken which took the price to the highest level since the first week of February 2018.
Looking at the weekly chart below, the 2018 high price is up at 156.652 and that is the next upside target for traders.
Drilling to the five minute chart below, The pair has had little in the way of corrections on the run to the upside could not get close to the 38.2% retracement of that leg higher (at 154.673) before resuming the trend higher.
The second leg has also fallen well short of the 38.2% retracement at 155.401. The price is trading just above the previous high 155.782.
Is it poised for another run?
A move back below the most recent corrective low at 155.50 area would be a chink in the armor of the trend move (but only a small chink). Stay below that level and there can be more downside probing…