Investing.com – The pound extended earlier gains against the yen on Wednesday, surging to hit a fresh 4-week high, after a Japanese government official said the country was ready to further intervene in the currency market if necessary.
GBP/JPY hit 133.79 during European afternoon trade, the pair’s highest since August 19; the pair subsequently consolidated at 133.73, soaring 3.65%.
The pair was likely to find support at 127.62, Tuesday’s low, and resistance at 134.04, the high of August 19.
Earlier in the day, a Japanese Ministry of Finance official indicated that the intervention was not the end to Japan’s efforts to stem the yen's gains saying, "When foreign-exchange intervention changes rates, there will be new buyers and sellers and [we] respond to that continuously".
Meanwhile, the Governor of the Bank of Japan Masaaki Shirakawa said that he “strongly expects that the action taken by the Ministry of Finance in the foreign exchange market will contribute to stable foreign exchange rate formation."
The pound was also up against the U.S. dollar, with GBP/USD gaining 0.52% to hit 1.5619.
Earlier Wednesday, official data showed that U.K. jobless claims increased more-than-expected in August, rising for the first time in 7 months.
GBP/JPY hit 133.79 during European afternoon trade, the pair’s highest since August 19; the pair subsequently consolidated at 133.73, soaring 3.65%.
The pair was likely to find support at 127.62, Tuesday’s low, and resistance at 134.04, the high of August 19.
Earlier in the day, a Japanese Ministry of Finance official indicated that the intervention was not the end to Japan’s efforts to stem the yen's gains saying, "When foreign-exchange intervention changes rates, there will be new buyers and sellers and [we] respond to that continuously".
Meanwhile, the Governor of the Bank of Japan Masaaki Shirakawa said that he “strongly expects that the action taken by the Ministry of Finance in the foreign exchange market will contribute to stable foreign exchange rate formation."
The pound was also up against the U.S. dollar, with GBP/USD gaining 0.52% to hit 1.5619.
Earlier Wednesday, official data showed that U.K. jobless claims increased more-than-expected in August, rising for the first time in 7 months.