Gbpjpy Gains Due To Risk On

 Gbpjpy Gains Due To Risk On

Gbp/Jpy Gains 0.17%, Support Present At 191.00

Friday was a pretty good day for the GBP/JPY, as it ended the trading session with a +0.17% change. The key driver behind the upside of GBP/JPY is the risk-on mood of the markets.

Especially after the release of US labor market data, the market's focus has shifted towards the risk-on assets. This is good news for the GBP but not so much for the JPY, which shines in times of risk-off.

For now, the GBP/JPY is trading near the 190.60 handle, with eyes set on the next resistance levels at 192.00 and 192.50. However, it is also worth mentioning that BoJ is really serious about maintaining the value of JPY against USD and other currencies.

Gbp/Jpy Faces Resistance At 192.00

So, if we see intervention in the USD/JPY, a similar move will take place in the GBP/JPY as well. In simple words, if the USD/JPY moves down due to FX intervention, the GBP/JPY will drop as well.

The technical outlook of the GBP/JPY shows that the pair closed the week at a strong point. However, it is dangerously close to the 192.00 resistance level, where a lot of sellers are looming.

Additionally, the GBP/JPY is making lower lows and highs, which suggests that the pair might revisit the downside. However, another indicator suggests that there's an Ichimoku cloud under the price, which could provide support.

The overall sentiment regarding the JPY is now mixed at best as BoJ continues to send mixed signals. On one occasion, it appears that the BoJ has gone full hawkish, while at other times, the BoJ sends out dovish signals.

Despite the mixed signals from the BoJ, one thing is clear: The central bank remains committed to defending the currency against devaluation.

So, if any extreme bullish moves happen in the USD/JPY and the GBP/JPY, the risks of intervention will jump significantly higher.

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