The British pound continues to own the safe haven Japanese yen. The GBP/JPY Forex pair is trading around 154.28 yen as we head into Tuesday. Volatility remains thin as many markets remain closed for the Christmas holiday. Friday is New Year’s Eve. However, market sentiment remains good despite the Omicron Covid-19 strain.
Due to the Omicron variant has forced another 1,000 flights to cancel in the United States on Monday. Since Christmas, this brings the total number of cancellations with ongoing staff shortages to 3,000. There has also been weather related delays. Both the Omicron and Delta Covid-19 strains are causing flight disruptions around the world.
Today’s economic calendar is light as the Christmas holiday. Several countries like Canada, the United Kingdom, Australia and New Zealand are all celebrating Boxing Day.
The euro area is not publishing top tier economic data. The United States is publishing weekly crude oil inventory data and the Consumer Board (CB) will release their monthly consumer sentiment.
Daily British Pound Technical Report (GBP/JPY)
Overnight, the British pound gained over 140 pips during the Wall Street trade hour from 153.05 yen to 154.45 yen. Bulls are encouraged by a golden cross forming on the above four hour GBP/JPY chart. The 50 hour simple moving average has crossed over the 200 hour simple moving average. The British pound is also above the psychological 153.00 number.
There is immediate technical resistance coming into play at 124.67 yen. A daily close above this level opens the door for the November high price point of 156.25 yen. The 29 October daily high price point lines up at 157.09 yen.
On the downside, immediate technical support comes into play at 153.60 yen. A sustained close below here opens the door for the 50 hour simple moving lining up near 153 yen. The 100 and 200 hour simple moving average merge near 152.50 yen.