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GBP/JPY slips as yen strengthens on Japan pension fund comments
GBP/JPY was around 217.1, down 0.3% on the day, while the cross stayed above key moving averages and support near 216.5.
GBP/JPY traded under pressure on Friday after comments from Japan Finance Minister Satsuki Katayama boosted the Japanese yen. FXStreet said the cross was around 217.10 at the time of writing, down 0.3% on the day.
Katayama said the government would encourage domestic pension funds, including the Government Pension Investment Fund, to increase holdings of Japanese financial assets. FXStreet noted the remarks did not reverse the yen’s broader weakness, with GBP/JPY pinned near levels last seen in 2008 and on track for a third straight weekly gain.
The British pound remained the strongest performing G10 currency in recent weeks, supported by Bank of England interest rate hike bets and easing political uncertainty in the United Kingdom, according to FXStreet.
On technicals, FXStreet reported GBP/JPY retains a bullish daily bias, holding above the 50-day, 100-day and 200-day SMAs, with RSI at 62.54 and MACD positive at 0.33. It cited resistance at 218.00, support at 216.50, then the 50-day SMA at 214.31 and 100-day SMA at 213.51, with the 200-day SMA at 210.57 as next major support if losses deepen.