GBP/JPY technical analysis: Bulls take a breather near descending trend-line/50-DMA confluence hurdle
|- This week’s strong up-move stalls near the 132.10-15 confluence resistance.
- Set-up remains in favour of bullish traders and support prospects for dip-buying.
The GBP/JPY cross paused this week's strong up-move from closer to multi-year lows and witnessed a modest pullback from a confluence resistance near the 132.10-15 region.
The mentioned hurdle comprises of a two-month-old descending trend-line and 50-day SMA, which should now act as a key pivotal point for the pair's near-term directional move.
Given the previous session’s sustained move beyond the 1.3040-50 horizontal resistance, the set-up might have already turned in favour of bullish traders amid the latest Brexit optimism.
Moreover, technical indicators on the daily chart have just started gaining positive traction and reinforce the bullish outlook, albeit overbought conditions on hourly charts seemed to cap gains.
Hence, any meaningful pullback seems more likely to attract some fresh buying interest near the 131.00 handle and limit further losses near the mentioned resistance breakpoint now turned support.
Above the mentioned confluence barrier, the cross is likely to surpass the 132.90-133.00 intermediate resistance and accelerate the up-move towards reclaiming the 134.00 round figure mark.
GBP/JPY daily chart
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