 | |  | | Tokyo, Feb 3.
GBP/JPY has backed down from highs above 211 seen overnight and into the Asian session this morning. It is currently indicated at 210.75/85. Dealers note quite a bit of retail investor profit-taking in this highly speculative cross. With GBP/JPY up from the low-209 low yesterday, profit-takes above 211 are not all that surprising. Technically, the cross could trade higher still however, perhaps towards the 213+ highs seen on December 13. With U.K. interest rates likely to remain high and with the differential via-a-vis Japanese interest rates likely to remain wide, especially after the comments from BoJ deputy governor Muto, a near-term test of 213 may not be as big of a stretch as some think. It must be noted however that after the trade up to 213+ in mid-December, the cross plunged, trading down to the mid-200 level by January 11-12. |  |  |  |  |
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