GBP/JPY technical analysis: Intraday bias seems tilted in favour of bullish traders
|- The cross regains some traction on slightly better-than-expected UK manufacturing PMI.
- A sustained move above 100-hour SMA support prospects for additional intraday gains.
A combination of supporting factors helped the GBP/JPY cross to regain some positive traction on Tuesday and climb to near one-week tops during the early European session. The British Pound picked up some pace following the release of slightly better-than-expected UK manufacturing PMI. Adding to this, the prevalent risk-on mood continued weighing on the Japanese Yen's perceived safe-haven status and remained supportive.
Bulls, however, struggled to capitalize on the intraday uptick and the cross once again failed to find acceptance above 23.6% Fibonacci level of the 135.75-132.31 recent leg down. Meanwhile, the fact that the cross has moved back above 100-hour SMA for the first time in over a week or so, the intraday bias seems tilted in favour of bullish traders and support prospects for a further near-term appreciating move.
Moreover, technical indicators on the 1-hourly chart have been gaining positive traction and also recovered from the bearish territory on 4-hourly/daily charts, adding credence to the constructive set-up. Hence, any dips back below the 133.00 handle might be seen as an opportunity to initiate some fresh bullish positions for an eventual move towards testing the 133.60-65 confluence barrier - comprising of 200-hour SMA and 38.2% Fibonacci level.
GBP/JPY 1-hourly 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.