GBP/JPY technical analysis: Bulls await a sustained move beyond 100-DMA/38.2% Fibo. confluence region
|- Continued with its struggle to sustain/build on the momentum beyond 100-DMA.
- Any meaningful pullback might continue to attract dip-buying near the 134.00 mark.
The GBP/JPY cross on Tuesday finally broke out of its overnight consolidative trading range and spiked to near two-month tops, beyond the key 135.00 psychological mark, albeit struggled to sustain/extend the momentum further beyond 100-day SMA.
The mentioned barrier coincides with 38.2% Fibonacci retracement level of the steep decline from the vicinity of the 149.00 handle to multi-year lows - near mid-1.2600s - and should now act as a key pivotal point for the pair's next leg of a directional move.
Given that technical indicators on hourly charts have already eased from slightly overbought conditions and maintained their bullish bias on the daily chart, the set-up remains in favour of bullish traders and support prospects for an extension of the positive move.
However, traders are likely to wait for a sustained move beyond the overnight swing higher - around the 135.40-45 region - before positioning for any further near-term appreciating move towards the 136.00 round-figure mark en-route 136.70-80 resistance zone.
On the flip side, any meaningful pullback might continue to attract some dip-buying interest and should help limit the downside near the 134.00 handle, which if broken might prompt some additional profit-taking and accelerate the slide further towards the 133.10-133.00 support.
GBP/JPY daily 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.