GBP/JPY analysis: Reaches new high level

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GBP/JPY

On Wednesday morning, the surge of the GBP/JPY currency exchange rate reached the 154.75 level. The surge is fueled by the higher than expected UK inflation data, which signals that there is a larger local demand for the currency, as larger sums are being circulated.

In the case that the rate continues to surge, it would have to pass the resistance of the 154.75 mark. Afterward, the pair could look for resistance in the weekly R3 simple pivot point at 154.96 and the 155.00 level.

Meanwhile, a decline of the GBP/JPY might look for support in the previous November high zone at 153.65/153.75 and the 50-hour simple moving average near 153.70.