GBP/JPY rallied back to 155.00 level as risk appetite revival undermines yen demand

• GBP/JPY reclaimed the 155.00 level on Friday, the pair lifted as a risk appetite revival undermined yen demand.
• But GBP/JPY continues to trade lower by about 0.8% on the week and ongoing uncertainty regarding geopolitics.

GBP/JPY was able to reclaim the 155.00 level on Friday, with the pair lifted as a strong recovery in US equity markets and other risk assets dampened demand for the safe-haven yen. At current levels just to the north of the big figure, the pair now trades with gains of more than 1.0% versus Thursday’s lows. From a technical standpoint, the fact that the 200-Day Moving Average at 153.39 held up so well on Thursday (it literally formed the low point of the day’s trade) is a good sign for the bulls.

But GBP/JPY continues to trade lower by about 0.8% on the week and ongoing uncertainty regarding geopolitics and how the war in Ukraine will impact the European/global economy may mate it difficult for the pair to push substantially higher. The West’s sanction response so far to Russia has been seen as soft and there is still hope for a diplomatic solution to the war but fighting in Ukraine is intensifying and casualties are piling up. Depending on developments over the weekend, things really could go either way for GBP/JPY.