GBP/JPY Price Analysis: Move beyond overnight swing high to pave way for additional gains
|- GBP/JPY attracts some dip-buying and jumps back to the 137.00 neighbourhood.
- The set-up favours bullish traders and supports prospects for further intraday gains.
Having shown some resilience below 100-hour SMA, the GBP/JPY cross regained positive traction and jumped to the 137.00 neighbourhood during the early European session. The subsequent move up pushed the cross beyond 200-hour SMA, with bulls now looking to extend the momentum back towards the overnight swing highs, around the 137.25 region.
Bullish technical indicators on hourly/daily charts support prospects for an extension of the intraday appreciating move amid an offered tone surrounding the safe-haven Japanese yen. Some follow-through strength beyond the 137.25-35 immediate hurdle will reaffirm the constructive outlook and pave the way for a move towards testing the 137.80-85 supply zone.
On the flip side, immediate support is now pegged near the 136.70 horizontal zone and is followed by the daily swing lows, around the 136.35 region. Failure to defend the mentioned support levels might prompt some technical selling and negate any near-term bullish bias, paving the way for a slide back towards challenging the key 135.00 psychological mark.
The latter coincides with monthly lows touched on October 2, which if broken decisively will be seen as a fresh trigger for bearish traders. The GBP/JPY cross might then turn vulnerable to extend the downfall towards the 134.55 intermediate support en-route the 134.00 round-figure mark and the recent daily closing lows, around the 133.65 region.
GBP/JPY 1-hourly chart
Technical levels to watch
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