FXStreet (Guatemala) - GBP/JPY has made a strong recovery over the past two days towards the 200 DMA that stands at 185.47 while highs on the sticks have scored 184.97 so far.
GBP/JPY had been building a better bid tone at the start of yesterday's business while European and US equities were performing in the green as risk sentiment started to return to the market with an early bullish run in Asia too, although short-lived at the start of the week. However, a rally came in Asia towards the close of yesterday's market and set off the theme for the Europeans and US session today.
This, coupled with the flow-related news in Sterling with Japanese insurer Mitsui Sumitomo agreeing to purchase Lloyd's of London unit Amlin for GBP3.5 bln, bolstered the pound as analysts at Brown Brothers Harriman noted.
This week, sterling traders will now have eyes on the BoE meeting. However, there has been a series of poor data of late in a dis-inflationary global market with plenty of uncertainties and bearishness around that any previous hawkishness may be compromised by recent economic sentiment and activity.
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