GBP/JPY refreshes daily high, bulls looking to build on momentum beyond 157.00 mark By HareshMenghani GBPJPY Coronavirus BOE RiskAppetite Currencies
A combination of supporting factors assisted the GBP/JPY cross to regain positive traction on Tuesday and build on the overnight bounce from sub-156.00 levels, or a four-day low. Hopes that the Omicron outbreak won't derail the UK economy and rising bets for additional rate hikes by the Bank of England continued underpinning the British pound.
In the latest coronavirus-related developments, UK Prime Minister Boris Johnson said on Monday that they are looking at the possibility of reducing the quarantine period to five days from seven. Johnson further added that they are making great progress in seeing off Omicron but noted that the number of cases in the hospital was still increasing.in December. Moreover, the markets expect another three to four rate increases in 2022.
On the other hand, signs of stability in the equity markets undermined the safe-haven Japanese yen and further contributed to the bid tone surrounding the GBP/JPY cross. It, however, remains to be seen if bulls are able to capitalize on the move or face rejection near the 157.35-40 resistance zone amid absent relevant market moving economic releases.