GBP/JPY: strong bids to 20 sma with yen broadly offered

GBP/JPY is currently on the bid on encouraging signs that the UK can make trade deals with nations outside of the EU directly, such as Australia who have already approached the UK for a free trade deal following its exit from the European Union.

The new prime minister, May, said, "I have been very clear that this government will make a success of our exit from the European Union. "One of the ways we will do this is by embracing the opportunities to strike free trade deals with our partners across the globe." 

"It is very encouraging that one of our closest international partners is already seeking to establish just such a deal. This shows that we can make Brexit work for Britain," she added.

Meanwhile, despite being a holiday in Japan, the yen crosses are moving on the back of comments from Japan chief cabinet secretary Suga who explained that the BOJ has options for further easing making a case for a weaker yen. 

GBP/JPY levels

GBP/JPY is recovering hard to the 20 sma on the 1hr sticks at 140.58 from session lows of 138.91. A score through this resistance will make a bullish case again within the same rising trend from 10th July business. The key target is 143.10 with closes to open the 200 sma on the 4hr sticks at 144.45.