- GBP / JPY finds positive traction for the third consecutive session on Wednesday.
- The bulls remained resistant despite the ever increasing number of deaths from coronavirus.
- A positive tone on the stock markets undermined the JPY and remained favorable.
The pound gained ground in the past hour and lifted the GBP / JPY cross to new highs, around 134.70.
The cross reversed an early dive in the 133.75 region and returned to positive territory for the third consecutive session on Wednesday – also marking its fourth day of progress over the previous five.
The crossover approached the several-week highs set for Tuesday and the rise was only sponsored by the emergence of new purchases around the pound, but without any obvious catalyst.
GBP increases continued to show some resilience at lower levels and also did not appear to be affected by a sharp increase in the number of deaths from the COVID-19 pandemic in the UK on Tuesday.
The fact that Prime Minister Boris Johnson, although he remained in intensive care, was last reported to be in stable condition, appears to be the only factor lending some support to the pound.
Apart from that, a slightly positive tone around the stock markets, despite new worries about the coronavirus pandemic, has undermined the demand for safe haven from the Japanese yen and remained favorable.
It will now be interesting to see if the cross is able to capitalize on the move, confirming a bullish break through a trading range close to two weeks, or again fails near the key psychological mark of 135.00.
Technical levels to watch