GBP/JPY Surges on Risk Appetite, Eyes 194.20 Resistance Level

GBP/JPY Surges Amid Rising Risk Appetite, Eyes Key Resistance at 194.20

The GBP/JPY currency pair surged on Monday, reaching a two-week high near the 194.20 resistance level as global risk appetite improved. This movement comes amid easing tensions in the EU-US trade relations after US President Donald Trump postponed planned tariffs on European Union imports until July 9. The news boosted investor confidence, especially on a light trading day with UK markets closed for the Spring Bank Holiday.

The Pound Sterling benefitted from the positive market sentiment, pushing higher against the Japanese Yen, which weakened ahead of the Bank of Japan Governor Kazuo Ueda’s upcoming conference on Tuesday. Market participants are closely watching the BoJ for signals on potential monetary policy moves.

If GBP/JPY breaks above the 194.20 resistance, it could target the four-month high near 196.25, further extending the recent bullish trend. The easing of EU-US trade tensions has alleviated fears of a significant disruption to global trade, supporting the upward momentum. The combined trade volume of the US and EU accounts for about 30% of global trade and 43% of world GDP, highlighting the importance of the trade relationship for currency markets.