However, GBP/JPY trades lower by 0.8% per week due to ongoing uncertainty about geopolitics.
GBP/JPY managed to recover the 155.00 level Friday. This was due to strong US equity markets recovery and other risk assets reducing demand for the safe-haven Japanese yen. The pair trades at levels that are just north of the big number, with gains exceeding 1.0% compared to Thursday’s lows. Technically, it is a positive sign that the 200-Day Average at 153.39 held strong on Thursday. It literally formed the low point in the day’s trading.
GBP/JPY trades lower by 0.8% per week. The uncertainty surrounding geopolitics and the impact of the war in Ukraine on the European/global economies may make it difficult for the pair not to move substantially higher. Although the West has so far reacted softly to Russia’s sanctions, there is still hope for a diplomatic resolution to the conflict. However, fighting in Ukraine is increasing and more casualties are being reported. GBP/JPY could be in a worse place depending on the developments this weekend.
