GBP/JPY Price Analysis: An inverted head-and-shoulders targeting 167.00

GBP/JPY soars for the eighth straight day and registers a fresh five-week high, above the 165.00, a level last seen since April 25. At 165.24, the GBP/JPY rallies as the Asian Pacific session is about to begin, up by 1.13%, due to a positive market mood and the Japanese yen weakness.

Sentiment and an ultra-dovish Bank of Japan (BoJ), propelled the GBP/JPY up

Alongside the aforementioned, Beijing’s lifting of restrictions was cheered by market players. Also, Bank of Japan (BoJ) board members, led by Governor Haruiko Kuroda, reiterated the ultra-dovish stance and maintained a weak yen. He emphasized that the BOJ will be unwavering in its posture of maintaining monetary easing to ensure the recent rise in inflation expectations lead to a sustained price increase.

Hence, the GBP/JPY continued surging since May 12, when the GBP/JPY began its 900-plus pip rally from 155.50s towards 165.20s.

GBP/JPY Price Forecast: Technical outlook

The cross-currency pair is upward biased from the GBP/JPY’s daily chart perspective. Confirmation of the previously-mentioned is the daily moving averages (DMAs) below the exchange rate, alongside the RSI at bullish territory, aiming higher. Additionally, an inverted head-and-shoulders formed, which targets 167.00, as measured from the May 12 swing low 155.58, to the neckline around 162.20.

Therefore, If that scenario plays out, the GBP/JPY’s first resistance would be the June 6 high at 165.57. Break above would expose the 166.00 mark. Once cleared, the next supply zone would be the inverted head-and-shoulders target at 167.00.