GBP/JPY Price Analysis: Bulls prepare for an attack of 157.00 as they reclaim 156.50

GBP/JPY bulls break above 156.50, top of the 154.30-156.50 range.
The market sentiment is upbeat, but the FX market is mixed.
GBP/JPY Technical Outlook: A daily close above 156.50 would add upward pressure on the pair.

Christian Borjon Valencia FXStreet

The GBP/JPY eyes to break the 154.30-156.50 range as risk-sentiment improves during the New York session. At the time of writing, the GBP/JPY is trading at 156.58.

In the FX complex, the market mood is mixed. Risk-sensitive currencies rise, led by the AUD, NZD, and GBP, while the safe-haven CHF and USD advance. In the case of the JPY is getting hammered throughout the session.

GBP/JPY Price Forecast: Technical outlook

The GBP/JPY broke above the top of the trading range during the session, but it would need a daily close above to cement its bullish case further. The daily moving averages reside well beneath the spot price, suggesting upward bias.

On Monday’s article, I noted that “GBP/JPY traders may wait on the sidelines, expecting a breakout of the 154.30-156.50 trading range.”

That said, the GBP/JPY first resistance would be January 18 daily high at 156.90. Once the level gives way, the next resistance would be the January 12 daily high at 157.70, followed by the November 2021 swing highs at 158.22.

On the flip side, the GBP/JPY first support would be 156.00. A breach of the latter would expose the February 7 daily low at 155.13, followed by February 3 155.04.

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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