GBP/JPY Price Analysis: Jumps to fresh multi-month tops, ascending triangle breakout in play
|- GBP/JPY gained strong positive traction through the early European session on Tuesday.
- The momentum pushed the cross beyond ascending triangle resistance near 141.30 area.
- The set-up favours bullish traders and supports prospects for a move to the 142.00 mark.
The GBP/JPY cross edged higher through the early European session and shot to its highest level since early September, around mid-141.00s. A sustained move beyond the 141.30 horizontal resistance might be seen as a fresh trigger for bullish traders.
The mentioned barrier, along with an upward sloping trend-line, constituted the formation of an ascending triangle on short-term charts. This is a bullish continuation pattern and supports prospects for additional gains.
Meanwhile, technical indicators on 4-hourly/daily charts maintained their bullish bias and are still far from being in the overbought territory. This further adds credence to the constructive set-up and favours bullish traders.
Some follow-through buying beyond the 141.40 region further reaffirms the bullish outlook and should now push the GBP/JPY cross towards the 142.00 mark. Bulls might then aim to test September 2020 swing highs, around the 142.30-35 region.
On the flip side, the 141.00-140.90 region now seems to protect the immediate downside. Any subsequent fall is more likely to attract some dip-buying and remain limited near the triangle support, around the 140.65 region.
The latter coincides with 200-hour SMA and should act as a key pivotal point for short-term traders. A convincing break below will negate the positive outlook and prompt some aggressive technical selling around the GBP/JPY cross.
GBP/JPY 1-hourly chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.