GBP/JPY Price Analysis: Bulls looking to build on momentum beyond 136.00 mark

A combination of factors assisted GBP/JPY to gain traction for the fifth consecutive session.
The technical set-up favours bullish traders and supports prospects for additional gains.
Dip-buying should help limit any meaningful slide near the key 135.00 psychological mark.

Haresh Menghani FXStreet

The GBP/JPY cross regained positive traction for the fifth consecutive session on Tuesday and moved back closer to two-week tops touched in the previous session. Bulls were now seen making a fresh attempt to build on the momentum beyond the 136.00 mark.

The cross on Monday broke through the 200-hour SMA for the first time in three-week. A subsequent move beyond the 23.6% Fibonacci level of the 142.72-133.05 recent pullback, along with the emergence of some dip-buying on Tuesday, favours bullish traders.

The bullish set-up is reinforced by the fact that oscillators on hourly charts have been gaining traction in the positive territory. Some follow-through buying beyond the overnight swing high, around the 136.20-25 area, will add credence to the constructive outlook.

The GBP/JPY cross might then aim to test the 38.2% Fibo. level resistance near the 136.80 region. The latter coincides with the very important 200-day SMA, which if cleared decisively should pave the way for an extension of the recent bounce from the 133.00 mark.

On the flip side, the 135.35-30 region (23.6% Fibo. level) now seems to have emerged as immediate strong support. Any further slide will now be seen as a buying opportunity and remain limited near the key 135.00 psychological mark amid the latest Brexit optimism.

That said, failure to defend the mentioned support levels might turn the GBP/JPY cross vulnerable to slide back to the 134.60-50 horizontal support. The downward trajectory could then drag the cross back towards multi-month lows touched on September 22nd.

GBP/JPY 1-hourly chart

Technical levels to watch

GBP/JPY

Overview
Today last price	135.9
Today Daily Change	0.45
Today Daily Change %	0.33
Today daily open	135.45

Trends
Daily SMA20	136.9
Daily SMA50	137.83
Daily SMA100	135.84
Daily SMA200	136.88

Levels
Previous Daily High	136.23
Previous Daily Low	134.37
Previous Weekly High	135.34
Previous Weekly Low	133.05
Previous Monthly High	142.04
Previous Monthly Low	137.75
Daily Fibonacci 38.2%	135.52
Daily Fibonacci 61.8%	135.08
Daily Pivot Point S1	134.46
Daily Pivot Point S2	133.48
Daily Pivot Point S3	132.6
Daily Pivot Point R1	136.33
Daily Pivot Point R2	137.22
Daily Pivot Point R3	138.2

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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