GBP/JPY Price Analysis: Recovery losses strength, consolidation above 136.00 is needed it to keep it going
|- Pound extends recovery versus yen but found resistance at 136.00 and 136.25.
- GBP/JPY bullish bias still in place, momentum eases.
The pound is rising for the fifth consecutive day versus the Japanese yen on Tuesday, as the recovery from the lowest in almost three months continues. The rally is showing signs of exhaustion as it failed to break Monday’s highs and also after being rejected from above 136.00 again.
The GBP/JPY will likely continue to consolidate between 135.00 and 136.00. If it manages to break and hold above 136.00 more gains seem likely. The first target is seen at 136.50 (20-day simple moving average) followed by 137.50/70.
If the current loss of momentum in GBP/JPY triggers a decline, the key support to watch is seen at the band 134.50/70. A break lower would increase the bearish pressure, suggesting a test of the September low at 133.00 (interim support at 133.75).
GBP/JPY 4-hour chart
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.