GBP/JPY reverses pullback from 169.00 amid UK’s cautious optimism, fears of Japan meddling – by anilpanchal7 GBPJPY RiskAppetite Politics YieldCurve PMI
sion over Japan’s intervention and geopolitical fears challenge the pair’s upside near the key resistance line.
That said, the optimism in the UK amid the higher odds of Rishi Sunak’s likely victory in the race for British Prime Minister. “Rishi Sunak looked set to become Britain's next prime minister after Boris Johnson withdrew from the contest on Sunday, saying that although he had enough support to make the final ballot he realized the country and the Conservative Party needed unity,” said Reuters.
Amid these plays, S&P 500 Futures print 0.50% intraday gains while the US 10-year Treasury yields remain offered around 4.19%, extending Friday’s losses from the 14-year high. Moving on, UK politics will be in focus but major attention will be given to the preliminary readings for the UK/US PMIs for October.
To sum up, GBP/JPY remains firmer and can extend the run-up on political optimism but Japan’s meddling and challenge to the sentiment could restrict the pair’s upside.GBP/JPY again struggles to overcome the six-month-old upward-sloping resistance line, near 169.85 at the latest. That said, the bullish MACD signals and the steady RSI requires the bears to remain cautious unless they break the aforementioned support line, around 166.20 by the press time, as well as conquer the 166.00 thresholds.