GBP/JPY breaks above 186 – at fresh 4-month highs

FXStreet (Mumbai) - GBP/JPY prolongs its upward trajectory and flies above 186 handle in the late-Asian session, largely on the back of broad sterling strength as the British currency remains boosted on Tories likely win in the UK’s elections.

GBP/JPY gains nearly 200 pips

Currently, the GBP/JPY cross trades 1.85% higher at 185.95, hovering close to fresh four month highs at 186.05. The cross in GBP/JPY skyrocketed to fresh multi-month highs in Asia after Cameron’s Conservatives party is on course to win UK’s election with close to a majority, kept the pound underpinned.

As per latest reports, BBC is now projecting 325 seats for the Conservatives, which represents a full 7 percentage points ahead of the Labour.

On the other hand, yen remains weak versus the US dollar, having little impact on the GBP/JPY cross. Meanwhile, markets eagerly await the final election results due out shortly.

GBP/JPY Levels to consider

To the upside, the next resistance is located at 186.48 (Jan 1 High) and above which it could extend gains to at 187.01 (Dec 31 High) levels. To the downside immediate support might be located at 184.17 (Today’s Low) levels below that at 183.11 levels.

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