GBP/JPY Price Analysis: Bulls in control near weekly tops, around 140.00 mark

GBP/JPY gained strong positive traction on Wednesday and shot to fresh weekly tops.
The set-up supports prospects for a move to retest multi-month tops, touched on Friday.
Sustained weakness below 200-hour SMA will negate the near-term positive outlook.

Haresh Menghani FXStreet

The GBP/JPY cross caught some aggressive bids on Wednesday built on this week's solid rebound from the vicinity of 100-day SMA support, around the 137.90 region. A sustained move beyond 200-hour SMA was further seen as a key trigger for bulls and pushed the cross to fresh weekly tops.

The GBP/JPY cross has now found acceptance above the key 140.00 psychological mark and seems poised to appreciate further. The momentum seems strong enough and has the potential to lift the cross back towards retesting near three-month tops, around the 140.70 region, touched last Friday.

The latter marks the 61.8% Fibonacci expansion level of the 134.40-140.30 move up and subsequent pullback, which if cleared should pave the way for a further near-term appreciating move. The constructive outlook is further reinforced by bullish technical indicators on the daily chart.

However, the incoming Brexit-related headlines might continue to infuse some volatility around the GBP cross and thus, warrant some caution before placing aggressive bullish bets. That said, any meaningful pullback might still be seen as a buying opportunity near the 139.60-55 horizontal zone.

Some follow-through weakness back below 200-hour SMA, currently around the 139.35 region, will negate prospects for any further positive move, instead prompt some technical selling. The GBP/JPY cross might then accelerate the slide towards the 139.00 mark en-route mid-138.00s.

GBP/JPY 1-hourly chart

Technical levels to watch

GBP/JPY

Overview
Today last price	140.01
Today Daily Change	0.88
Today Daily Change %	0.63
Today daily open	139.13

Trends
Daily SMA20	138.91
Daily SMA50	137.52
Daily SMA100	137.67
Daily SMA200	135.59

Levels
Previous Daily High	139.38
Previous Daily Low	138.41
Previous Weekly High	140.71
Previous Weekly Low	138.38
Previous Monthly High	140.32
Previous Monthly Low	134.87
Daily Fibonacci 38.2%	138.78
Daily Fibonacci 61.8%	139.01
Daily Pivot Point S1	138.56
Daily Pivot Point S2	138
Daily Pivot Point S3	137.59
Daily Pivot Point R1	139.54
Daily Pivot Point R2	139.94
Daily Pivot Point R3	140.51

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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