Sterling advanced versus the yen Monday, as a European Central Bank cross-rate calculation put the pair near 210.15 and FXStreet flagged a 211.10 moving average.
The ECB’s Oct. 26 figures list 176.15 yen and 0.83820 pounds per euro. Dividing the yen figure by the pound figure gives about 210.15 yen per pound; the same calculation for Oct. 23 gives about 209.62, a rise of roughly 0.25%. The ECB says its reference rates are published for information purposes, making the cross-rate a daily benchmark rather than a live GBP/JPY quote.
FXStreet reported in an Oct. 26 analysis that GBP/JPY was above 210 and had gained more than 0.20% that day. The outlet put the pair’s Oct. 23 low at 209.13. Those market figures and the ECB calculation describe different measures, and their sources do not provide a shared observation time.
FXStreet analyst Christian Borjon Valencia said a move above 211.00 could bring the 50-day simple moving average at 211.10 into focus. He listed 212.00 and the 200-day average at 212.95 as further chart markers. Valencia said the pair would need to clear its Aug. 25 high of 217.48 to break the wider pattern of lower highs and lower lows. If the rate fell below 209.13, his analysis identified 209.00 and 206.89 as downside reference points.
FXStreet cited stronger U.S. equities and prospects for easing Middle East tensions among the market conditions it discussed, but did not establish that either drove the currency move. The Associated Press reported separately that the S&P 500 gained 0.7% Monday, closing at 7,676.77. In other coverage, AP said Tehran hosted a meeting involving Iranian officials and counterparts from Saudi Arabia, Pakistan and Turkey; participants agreed to keep regional security discussions going.
The Federal Open Market Committee (FOMC) is scheduled to meet Oct. 27-28, followed by the Bank of Japan’s meeting on Oct. 29-30.
