GBP/JPY retakes 152.00 mark, fresh weekly tops
- GBP/JPY continued scaling higher for the fourth consecutive session on Friday.
- The risk-on impulse undermined the safe-haven JPY and remained supportive.
- Brexit woes, softer UK macro data might hold bulls from placing aggressive bets.
The GBP/JPY cross shot to fresh weekly tops during the mid-European session, with bulls now looking to extend the momentum further beyond the 152.00 mark.
The cross caught some fresh bids on the last day of the week and built on its recent strong rebound from the 148.45 region, or the lowest level since March touched on Tuesday. The risk-on impulse in the markets undermined demand for the safe-haven Japanese yen and pushed the GBP/JPY cross higher for the fourth consecutive session.
Investors now seemed to have set aside worries about the potential economic fallout from the fast-spreading Delta variant of the coronavirus. This was evident from a generally positive tone around the equity markets, which, in turn, acted as a headwind for traditional safe-haven currencies, including the Japanese yen.
The intraday positive move seemed rather unaffected by concerns about the EU-UK impasse over the Northern Ireland Protocol of the Brexit deal. This, along with the resurgence of COVID-19 infections in the UK, might hold traders from placing aggressive bullish bets and cap any further gains for the GBP/JPY cross.
Bulls even shrugged off Friday’s mixed UK Retail Sales figures for June and disappointing July PMI prints (Manufacturing and Services). Nevertheless, the cross remains on track to end the week on a positive note, snapping three straight weeks of the losing streak.