GBP/JPY Price Analysis: Sits near the highest level since June 8, just below mid-139.00s
|- GBP/JPY gained traction for the third consecutive session on Wednesday.
- Bulls are likely to wait for a sustained move beyond the 139.50 region.
The GBP/JPY cross edged higher for the third consecutive session on Wednesday and was last seen trading just below mid-139.00s – the highest level since June 8. The mentioned region coincides with the top boundary of an ascending trend-channel extending from late June and should act as a key pivotal point for short-term traders.
Meanwhile, RSI (14) on the daily is flashing slightly overbought conditions and warrant some caution for bullish traders. This, in turn, makes it prudent to wait for some strong follow-through buying before positioning for any further near-term appreciating move.
A convincing breakthrough will now set the stage for a move back towards June monthly swing highs, around the 139.75 region, before bulls eventually aim to lift the cross beyond the key 140.00 psychological mark.
On the flip side, any meaningful pullback below the 139.00 mark might now be seen as a buying opportunity and remain limited near the 138.75 region. That said, some follow-through selling might accelerate the slide further towards the 138.10-138.00 intermediate support en-route monthly lows, around the 137.75 region.
GBP/JPY daily 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.