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GBP/JPY jumps off 200-DMA

FXStreet (Mumbai) - The GBP/JPY pair jumped off from the 200-DMA located at 178.90 as the British Pound inched higher tracking the slight recovery in the benchmark Gilt yield in the UK.

Pound gains as Gilt yields recover

The British Pound is witnessing recovery, driven partly by the recovery in the Gilt yields. The 10-year yield in the UK has recovered from the low of 1.677% to 1.7%. Consequently, the GBP/USD pair rose 0.335 to 1.4795. Meanwhile, the USD/JPY pair trades largely flat around 121.35 levels. Moreover, the losses in the yen have been capped due to the weakness in the US Treasury yields.

GBP/JPY Technical Levels

The pair currently trades 0.28% higher at 179.51. The immediate resistance is seen at 179.86 (5-DMA), above which gains could be extended to 180.95 (50-DMA). On the other hand, support is seen at 178.90 (200-DMA) and 178.22.

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